There Are Three Forms of Market Efficiency

question 14

Multiple Choice

There are three forms of market efficiency.All of the following statements are correct EXCEPT:

• A)The weak form efficiency states that no investor can earn excess returns based on historical price information.
• B)The strong form of efficiency states that no investor can consistently earn excess returns since all public and private information is reflected in stock prices.
• C)The semi-strong form of efficiency states that no investor can earn excess returns based on an investment strategy using public information.
• D)Market efficiency is a hard and fast rule that has been verified in real-world situations.

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Definitions:

Avoidant Personality Disorder

A mental health condition marked by feelings of extreme social inhibition, inadequacy, and sensitivity to negative evaluation.

Social Situations

Scenarios involving interaction with others in various settings, which can influence behaviors, emotions, and perceptions.

Schizotypal Personality Disorder

A mental health condition marked by severe social anxiety, thought disorder, paranoid ideation, derealization, and often unconventional beliefs.

Withdrawal

The process or experience of stopping the use of an addictive substance, leading to physiological and mental symptoms.