You Have Observed That the Forecasts of an Investment Advisor

question 10

Multiple Choice

You have observed that the forecasts of an investment advisor consistently outperform the other reported forecasts. The efficient markets hypothesis says that future forecasts by this advisor

• A)may or may not be better than the other forecasts. Past performance is no guarantee of the future.
• B)will always be the best of the group.
• C)will definitely be worse in the future. What goes up must come down.
• D)will be worse in the near future,but improve over time.

---

Definitions:

Depreciation Rate

The depreciation rate is the percentage rate at which an asset is depreciated across its useful life, determining how much of its value is expensed each year.