If a Market Is Strong Form Efficiency, It Also Implies

question 34

Multiple Choice

If a market is strong form efficiency, it also implies that:

• A)semistrong form efficiency holds.
• B)weak form efficiency holds.
• C)one cannot earn abnormal returns with inside information.
• D)Both A and C.
• E)A, B and C.

---

Definitions:

Stereotypes

Oversimplified generalizations about groups of people that often underlie prejudice and discrimination.

Cognitions

Mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Attributions

Attributions refer to the explanations individuals make about the causes of their own and others' behavior.

Behavioral Component

The aspect of attitudes that pertains to the way one behaves with respect to certain stimuli or situations.