If Security Markets Were Truly Strong-Form Efficient, You Would Never

question 6

True/False

If security markets were truly strong-form efficient, you would never be able to realize a rate of return on a security greater than the marginal investor's expected (or required) rate of return.

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Definitions:

Parallel

Entities or processes that are happening simultaneously without intersecting or affecting each other directly.

Variables

Elements, features, or factors that can be changed and measured in an experiment to determine their effects.

Main Effect

In analysis of variance, when a factor or an independent variable has a significant effect upon the outcome variable.

ANOVA

Short for Analysis of Variance, a set of statistical techniques used to compare the means of three or more samples.