The Efficient Market Hypothesis Asserts That

question 145

Multiple Choice

The efficient market hypothesis asserts that:

• A)it is virtually impossible to consistently pick stocks that perform exceptionally well because all publicly available information is immediately reflected in stock prices.
• B)studying historic patterns of stock price movements will generally identify winning investments.
• C)fundamental analysis performed by individuals often reveals bargains despite the fact that professionals analyze all information as soon as it becomes available.
• D)All of the above

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Definitions:

Productivity

The efficiency at which individuals, companies, or industries produce goods or services, usually measured in terms of output per unit of input.

Competitive Advantage

The attribute(s) or condition(s) that enables a company to outperform its competitors, such as cost structure, product quality, brand, or customer service.

Productivity Obstacles

Factors or conditions that hinder the efficiency or effectiveness of work, leading to reduced output or performance.

Procrastination

The action of delaying or postponing tasks despite knowing there might be negative consequences.