Evidence in Support of the Efficient Markets Hypothesis Includes

question 101

Multiple Choice

Evidence in support of the efficient markets hypothesis includes

• A)the failure of technical analysis to outperform the market.
• B)the small-firm effect.
• C)the January effect.
• D)excessive volatility.

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Definitions:

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time, often measured as the annual percentage increase in real GDP.

Social Overhead Capital

Infrastructure and public goods provided by the government or public sector, essential for economic activities and societal well-being, such as roads, schools, and hospitals.

Developing Country

A nation with a lower level of industrialization, lower living standards, and lower Human Development Index scores compared to developed countries.

Private Sector

The part of the economy that is run by individuals and companies for profit and is not under direct state control.