If the Stock Market Is Semistrong Efficient, Then

question 50

Multiple Choice

If the stock market is semistrong efficient, then

• A)an investor will never earn any excess return on his stock investment if he is privy only to publicly available information.
• B)investors can expect stocks to be fairly priced according to their risk most of the time.
• C)investors can expect new information about a firm to be rapidly reflected in its stock price.
• D)Both B and C are correct statements.

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Definitions:

Investment Guidelines

A set of principles or rules designed to guide the management of investments, ensuring they meet specific objectives and constraints.

Money Market Accounts

Interest-bearing accounts offered by banks and credit unions, providing higher interest rates than savings accounts.

Diversify Investments

A strategy to spread investments across various assets to reduce risk.

Risk-Management

The process of identifying, analyzing, and responding to risk factors throughout the life of a project or business to mitigate risks.