The Strong-Form Efficient Market Implies That

question 19

Multiple Choice

The strong-form efficient market implies that:

• A) every investor can consistently beat the market after adjusting for risk differences
• B) stock prices reflect all public and private knowledge
• C) corporate officers and insiders can earn above-average, risk-adjusted profits
• D) all future returns can be predicted for investments if the beta is known

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Definitions:

Additional Work

Tasks or services that are added to the original scope of a contract or agreement, often requiring a modification to terms and additional payment.

Preexisting Duty

An obligation that one party is already legally required to perform, which cannot serve as consideration for a new contract.

Highlights

Key points or significant details that stand out within a larger context.

Preexisting Duty

An obligation that a party is already legally bound to perform, which cannot serve as consideration for a new contract.