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:

British Court

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John Wilkes

An 18th-century British politician and journalist known for his radical views, defense of liberty, and challenges to the government's authority.

King George III

The King of Great Britain and Ireland during the late 18th century, best known for his leadership during the American Revolutionary War.

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