An Implication of the Efficient Markets Hypothesis Is That

question 46

Multiple Choice

An implication of the efficient markets hypothesis is that

• A)only sophisticated investors will be able to earn above-normal profits from financial investments.
• B)above-normal profits are available only to major traders.
• C)above-normal profits will be eliminated in the trading process.
• D)unless he or she acts recklessly, the average investor should be able to make above-normal profits.

---

Definitions:

Farm Employment

Jobs and labor associated with working on farms, including planting, cultivation, and harvesting of crops, as well as raising livestock.

Agriculture Commodities

Products derived from farming and agriculture, such as grains, livestock, and dairy products, which are traded on commodities markets.

Price Inelastic

Describes a situation where the quantity demanded of a good or service is not significantly affected by changes in its price.

Parity Ratio

The ratio used to assess the relative value of two currencies, commodities, or sets of data.