According to the Semi-Strong Form of the Efficient Markets Hypothesis

question 41

Multiple Choice

According to the semi-strong form of the efficient markets hypothesis ________.

• A)share prices do not rapidly adjust to new information
• B)future changes in share prices cannot be predicted from any information that is publicly available
• C)corporate insiders should have no better investment performance than other investors even if allowed to trade freely
• D)arbitrage between futures and cash markets should not produce extraordinary profits

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Definitions:

Screams

Loud, sharp sounds made by someone forcefully expressing fear, pain, or excitement.

Committed a Crime

The act of engaging in an action that violates a law and is subject to legal prosecution and punishment.

Failure

The lack of success in achieving a desired outcome or meeting a set objective.

Negotiated Rule Making

Occurs when an agency that is about to create a new rule or revise existing rules enters into a cooperative process by which all parties affected by the rule have a chance to shape the final form that the rule will take.