The Semistrong-Form of the Efficient Market Hypothesis Implies That ________

question 28

Multiple Choice

The semistrong-form of the efficient market hypothesis implies that ________ generate abnormal returns and ________ generate abnormal returns.

• A) technical analysis cannot; fundamental analysis can
• B) technical analysis can; fundamental analysis can
• C) technical analysis can; fundamental analysis cannot
• D) technical analysis cannot; fundamental analysis cannot

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Definitions:

Referent Power

A form of influence based on the leader or influencer's personality and ability to attract followers through charisma, competence, or moral example.

Centrality

The importance or influence of a role or position within a network or system, often determined by the number of connections or dependencies.

Ingratiation

A psychological strategy where an individual attempts to make themselves more likable or appealing to others, often to gain favor or approval.

Information Control

The management and regulation of information flow within an organization, focusing on optimizing access and protecting confidentiality.