The Efficient Market Hypothesis

question 159

Multiple Choice

The efficient market hypothesis:

• A)supports the validity of technical analysis but not fundamental analysis.
• B)supports the validity of fundamental analysis but not technical analysis.
• C)supports the validity of both technical and fundamental analysis.
• D)supports the validity of neither technical nor fundamental analysis.
• E)is unrelated to the disciplines of fundamental and technical analysis.

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Definitions:

Annual Financial Advantage

A term referring to the overall financial benefit that an organization or project is expected to generate on a yearly basis.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue is contributing to covering fixed costs and generating profit.

Machine Hours

A measure of production time, quantifying how many hours machines were operational in a given period.

Industrial Fiber

A category of fiber materials that are primarily used for their physical properties and performance in industrial applications rather than their aesthetic or comfort attributes.