If the Financial Markets Are Highly Efficient, Then

question 3

Multiple Choice

If the financial markets are highly efficient, then:

• A)investing based on technical analysis is highly recommended.
• B)holding a diversified, low-cost, passively managed portfolio is probably your best investment strategy.
• C)you should adopt an investment strategy based on market timing.
• D)having a professional manager who actively trades your portfolio is most likely your best investment strategy.
• E)it does not matter which securities you invest in as all securities will provide relatively equal returns.

---

Definitions:

Caffeine Use

The consumption of caffeine, a stimulant found in coffee, tea, chocolate, energy drinks, and certain medications, which can affect mental alertness and physical performance.

Physical Effects

The bodily changes or consequences that result from an action, condition, or disease.

Intoxication

The condition of having physical or mental control impaired by the excessive consumption of alcohol, drugs, or other psychoactive substances.

Overdose

A scenario in which an individual consumes an excessive and dangerous amount of a substance, typically drugs or medication, leading to potentially fatal outcomes.