If the Efficient Markets Hypothesis Is Correct, Then

question 128

Multiple Choice

If the efficient markets hypothesis is correct, then

• A)the number of shares of stock offered for sale exceeds the number of shares of stock that people want to buy.
• B)the stock market is informationally efficient.
• C)stock prices never follow a random walk.
• D)at the market price, more people think the stock is overvalued rather than undervalued.

---

Definitions:

Corporate Social Responsibility (CSR)

A self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Community

A group of people living in the same place or having a particular characteristic in common, often sharing a sense of belonging or mutual support.

Corporate Social Responsibility (CSR)

A commercial strategy that incorporates social and ecological considerations into its operations and stakeholder engagements.

Audit

A systematic examination and verification of a company's financial and operational records by an independent entity to ensure accuracy and compliance with accounting standards and regulations.