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:

Dense

Having a high concentration of mass or substance in a specified volume; commonly used to describe objects or materials that are tightly composed without much space between particles.

Volume

A measure of the amount of space that a substance or object occupies or that is enclosed within a container.

Mass

A measure of the amount of matter contained in an object, reflecting its resistance to acceleration when a force is applied.

Chemical Sample

A portion of material taken to represent the whole of a substance for analysis or study.