If Markets Were Strong Form Efficient, Which of the Following

question 18

Multiple Choice

If markets were strong form efficient, which of the following situations would yield abnormal returns?

• A)Analyzing a company's earnings report.
• B)Identifying a pattern in a company's stock price
• C)Obtaining insider information.
• D)None of the above would yield abnormal returns.

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Definitions:

Negative Reinforcement

The process of increasing a behavior by removing or avoiding a negative outcome or stimulus.

Positive Reinforcement

A process in operant conditioning that increases the likelihood of a behavior by following it with a desirable outcome or reward.

Positive Punishment

Increasing the likelihood of reducing a behavior by adding an unfavorable outcome or event following the behavior.

Natural Consequences

Punishments enacted naturally as a consequence of the negative behavior.