If Security Markets Are Semistrong-Form Efficient, Investors Cannot Solely Use

question 3

Multiple Choice

If security markets are semistrong-form efficient, investors cannot solely use ____ to earn excess returns.

• A) previous price movements
• B) insider information
• C) publicly available information
• D) A and C

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Definitions:

Sales Forecast

An estimate of the future sales of a product or service over a specific period, based on historical data, market analysis, and other factors.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Average Collection Period

The average number of days it takes for a company to collect payments from its credit sales, a measure of the effectiveness of its credit and collection policies.

Year-End Balance

The final amount of money in an account at the conclusion of a financial year, after all transactions have been accounted for.