The Efficient Markets Hypothesis Suggests That Investors

question 2

Multiple Choice

The efficient markets hypothesis suggests that investors

• A)should purchase no-load mutual funds which have low management fees.
• B)can use the advice of technical analysts to outperform the market.
• C)let too many unexploited profit opportunities go by if they adopt a "buy and hold" strategy.
• D)act on all "hot tips" they hear.

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Definitions:

Myxoma Virus

A leporipoxvirus that causes myxomatosis, a disease in rabbits and hares characterized by skin tumors and often leads to death.

Virulent

Characterized by a high degree of pathogenicity; capable of causing disease.

Transmission

The process of transferring something from one place, person, or organism to another, used in various contexts including genetics and infectious diseases.

Parasitism Success

The effectiveness with which a parasite is able to infect, exploit, and potentially reproduce within its host organism.