The Efficient Markets Hypothesis Is the Idea That

question 108

Multiple Choice

The efficient markets hypothesis is the idea that:

• A) asset prices represent all publicly available information.
• B) stock values revert to their historical mean values.
• C) the prices of assets are systemically biased, allowing savvy investors to make above-market returns by exploiting the efficiency losses.
• D) stock buyers are more likely to assess financial information more efficiently than the sellers of stocks.

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity by accelerating the heart rate, constricting blood vessels, and raising blood pressure.

Autonomic Nervous System

The part of the nervous system responsible for control of bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.

Endocrine System

The collection of glands that produce hormones to regulate metabolism, growth and development, tissue function, sexual function, reproduction, sleep, and mood, among other things.

Somatic Nervous System

The somatic nervous system is part of the peripheral nervous system responsible for controlling voluntary movements of the body and transmitting sensory information to the central nervous system.