There Are Three Forms of Market Efficiency

question 14

Multiple Choice

There are three forms of market efficiency.All of the following statements are correct EXCEPT:

• A)The weak form efficiency states that no investor can earn excess returns based on historical price information.
• B)The strong form of efficiency states that no investor can consistently earn excess returns since all public and private information is reflected in stock prices.
• C)The semi-strong form of efficiency states that no investor can earn excess returns based on an investment strategy using public information.
• D)Market efficiency is a hard and fast rule that has been verified in real-world situations.

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Definitions:

Holocaust

The Holocaust was a systematic, state-sponsored persecution and mass murder of six million Jews and millions of others by the Nazi regime during World War II.

Actively Participated

The engagement of individuals in activities or events in a manner that is both enthusiastic and contributing towards the achievement of a goal.

Free Rider

An individual who benefits from resources or services without directly contributing to the cost or effort involved in their provision.

Marriage

Is a socially approved, presumably long-term sexual and economic union between two people. It involves reciprocal rights and obligations between spouses and between parents and children.