If the Stock Market Is Semistrong Efficient, Which of the Following

question 48

Multiple Choice

If the stock market is semistrong efficient, which of the following statements is most correct?

• A) All stocks should have the same expected returns; however, they may have different realized returns.
• B) In equilibrium, stocks and bonds should have the same expected returns.
• C) Investors can outperform the market if they have access to information which has not yet been publicly revealed.
• D) If the stock market has been performing strongly over the past several months, stock prices are more likely to decline than increase over the next several months.
• E) None of the statements above is correct.

---

Definitions:

Testes

The male reproductive organs that produce sperm and hormones, including testosterone.

Genetic Heritage

The genetic information and traits passed down from one's ancestors, influencing various aspects of an individual's physical and possibly behavioral characteristics.

Genotype

is the genetic makeup of an organism that determines its characteristics, including both visible traits and traits that are not visible.

Phenotype

The visible or observable expression of an organism's genetics, including physical characteristics and behaviors.