An Implication of the Efficient Market Hypothesis Is

question 3

Multiple Choice

An implication of the efficient market hypothesis is

• A)securities prices are randomly determined
• B)stock prices reflect historical information
• C)few investors can expect to outperform the market over a period of time
• D)after adjusting for risk, money market securities offer superior returns

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Definitions:

Executory Contract

An executory contract is a contract in which not all obligations have been fulfilled by one or more parties.

Necessary

Refers to something required or indispensable for a particular purpose or need.

Disaffirm

The act of renouncing or rejecting a legal contract or agreement, typically used in the context of minors disaffirming contracts.

Misrepresenting Age

The act of falsely stating one's age, typically for the purpose of obtaining age-restricted goods, services, or rights.