The Strong Form of the Efficient Market Hypothesis Contends That

question 36

Multiple Choice

The strong form of the efficient market hypothesis contends that

• A) a select few institutional investors can earn abnormal profits.
• B) no one can ever outperform the market.
• C) no one can consistently earn a profit.
• D) no one can consistently earn abnormal profits.

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Definitions:

Introversion-Extraversion

A personality trait spectrum where introversion is characterized by a focus on internal feelings rather than external sources of stimulation, and extraversion is characterized by energy from external interactions.

Psychodynamic Personality Theories

A group of theories that emphasize the influence of the unconscious mind and childhood experiences on personality.

Scientific Evaluation

The process of systematically examining scientific evidence through experiments and observations to make informed conclusions or decisions.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.