Which Statement Is Consistent with the Efficient Markets Hypothesis

question 260

Multiple Choice

Which statement is consistent with the efficient markets hypothesis?

• A) The majority of stock mutual funds cannot outperform stock composite indexes.
• B) No mutual funds can outperform stock composite indexes at any time.
• C) No one can earn a return in the stock market.
• D) Technical analysis is the only way to beat the market over time.

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Definitions:

Mental Models

Internal representations of external reality that people use to understand and navigate the world around them, influencing their perceptions and decision-making.

Economic-Level Developments

Refers to significant changes or advancements in an economy, affecting growth, employment, and living standards.

Complex Human Systems

Complex Human Systems refer to intricate networks of interactions and relationships between individuals and groups within organizations or societies, characterized by interdependence and adaptability.

Theories In Use

Implicit frameworks or models that guide the behavior and decision-making processes of individuals and organizations in practice.