If the Efficient Market Hypothesis Holds, Investors Should Expect

question 16

Multiple Choice

If the efficient market hypothesis holds, investors should expect:

• A)to earn only a normal return.
• B)to receive a fair price for their securities.
• C)always be able to pick stocks that will outperform the market averages.
• D)Both A and B.
• E)Both B and C.

---

Definitions:

Retroversion

The tilting backward of an organ or part, such as the uterus, from its normal position.

Anteflexion

The bending forward of an organ or part of the body.

Anteversion

A forward tilting of an organ, such as the uterus, from its normal position.

Minipill

A type of birth control pill that contains only progesterone and is taken to prevent pregnancy.