To Disprove the Efficient-Markets Hypothesis, Financial Analysts Must Be Able

question 7

Multiple Choice

To disprove the efficient-markets hypothesis, financial analysts must be able to:

• A)take advantage of old information.
• B)identify undervalued stocks.
• C)get insider information.
• D)accurately identify perfectly valued stocks.

Recognize the definition and examples of sample points and experimental outcomes.

Comprehend the principle behind the repetition of experiments and possible variations in outcomes.

Understand and identify different types of probabilities including prior, posterior, conditional, and subjective.

Apply the counting rules for permutations and combinations to calculate possible outcomes.

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Definitions:

Organic Societies

Societies characterized by complex interdependence of parts, akin to organisms, where differentiation of functions exists for the overall wellbeing.

Social Facts

Aspects of social life that exist outside of individuals, such as laws, norms, and values, that influence their behavior.

Social Conventions

Agreed-upon norms and practices that govern behavior within societies or groups.

Language

A system of spoken, written, or gestural symbols used by people to communicate thoughts, emotions, and information.