Which Form of the Efficient Market Hypothesis Implies That Security

question 31

Multiple Choice

Which form of the efficient market hypothesis implies that security prices reflect all information contained in past prices?

• A) The weak form.
• B) The semi-strong form.
• C) The strong form.
• D) The hard form.
• E) The past form.

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Definitions:

Differential Cost

The difference in cost between two alternative decisions or scenarios, important in the process of making financial decisions.

Book Value

The net value of a company's assets less its liabilities and preferred stock, often used to estimate the company's worth.

Yearly Expense

The total amount of money spent by a business or individual over the course of a year, including operational, administrative, and living expenses.

Old Equipment

Machinery or tools that have been used for a long period and may be outdated or less efficient compared to newer versions.