The Efficient Markets Hypothesis Suggests That It Is No Better

question 264

True/False

The efficient markets hypothesis suggests that it is no better to invest in a mutual fund that has performed well for 5 years in a row than one that has performed poorly for 5 years in a row.

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Definitions:

Comparative Reasoning

A method of thinking where different objects, ideas, or situations are examined in relation to each other to identify similarities and differences.

Ideological Reasoning

Making conclusions or judgments based on a set of beliefs or ideologies.

Empirical Reasoning

Reasoning based on observed and measurable evidence, typically through experiments or experience, rather than theory or pure logic.

Cause-And-Effect

A relationship where one event (the cause) makes another event happen (the effect).