You Discover That You Can Make Greater Than Expected Returns

question 329

Multiple Choice

You discover that you can make greater than expected returns by buying stock in firms whenever the growth rate in sales predicted by an investment survey exceeds the stock's current price-
Earnings ratio. Which of the following describes this event?

• A) This would not be a violation of market efficiency.
• B) This would be a violation of weak form efficiency.
• C) This would be a violation of semi-strong form efficiency.
• D) This would be a violation of strong form efficiency but not of semi-strong form efficiency.
• E) This would be a violation of all forms of market efficiency.

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Definitions:

Psychosocial Functioning

An individual's ability to perform social roles in both interpersonal and societal settings, including emotional, social, and psychological capabilities.

Normalization Principle

The concept that individuals with disabilities or mental health issues should be entitled to live a life as close as possible to the norms and values of society.

Deinstitutionalization

refers to the policy of moving mentally ill patients out of state-run institutions and closing those institutions in favor of community-based treatment.