The Efficient-Markets Hypothesis States

question 34

Multiple Choice

The efficient-markets hypothesis states:

• A)The price of every stock equals the value of the stock, so no stock is a better buy than any other.
• B)The price of every stock is greater than the value of the stock, so look for stocks with high prices.
• C)Markets display cognitive dissonance, so look for stocks with high price-to-equity ratios.
• D)Market participants can earn extra long-run returns, which drive up the price of a stock.

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Definitions:

White Domination

A social system where white individuals hold power and privilege over other racial groups, often instituted through racial segregation, discrimination, and policies.

"Whites Only"

Signs or policies used, especially in the United States during segregation, to enforce racial discrimination by restricting access to certain areas, services, or rights to white individuals only.

Business Serving

Activities performed by a business aimed at assisting and fulfilling the needs of its customers.

Kansas Exodus

The mass migration of African Americans from the southern United States to Kansas following the Reconstruction era, seeking political and social freedom.