The Efficient Markets Hypothesis Implies That in the Stock Market

question 179

Multiple Choice

The efficient markets hypothesis implies that in the stock market:

• A) everyone can earn more than everyone else some of the time.
• B) no one can systematically earn more than the average market return.
• C) people with more funds earn higher returns.
• D) people can use technical analysis to systematically earn high returns.

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Definitions:

Absolute Income Gap

The difference in total income or earnings between individuals, households, or countries, measured without adjusting for living costs or other factors.

Real Income Per Capita

The average income per person in a country, adjusted for inflation, which reflects the purchasing power and economic well-being of the population.

Growth Rate

The percentage change of a specific variable within a specified time period, often used to describe the increase in population, revenue, or other significant measures.

Life Expectancy

The average number of years an individual is expected to live, based on current mortality rates and health conditions.