If the Efficient Market Hypothesis Holds, Investors Should Expect

question 33

Multiple Choice

If the efficient market hypothesis holds, investors should expect
I.to receive a fair price for their security
II.to earn a normal rate of return on their investments
III.to be able to pick stocks that will outperform the market

• A)I only
• B)II only
• C)III only
• D)I and II only

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Definitions:

Ideal Self

Ideal self refers to the person that an individual aspires to be, encompassing their goals, values, and aspirations.

Neuroticism

A characteristic of personality defined by feelings of mood swings, nervousness, melancholy, concern, and unhappiness.

Introversion

A personality trait characterized by a focus on internal feelings rather than external sources of stimulation, often involving the preference for solitude or small groups.

Extraversion

A personality trait characterized by outgoingness, high energy, and engagement with the external world.