The Efficient Markets Hypothesis Indicates That Investors

question 41

Multiple Choice

The efficient markets hypothesis indicates that investors

• A)can use the advice of technical analysts to outperform the market.
• B)do better on average if they adopt a "buy and hold" strategy.
• C)let too many unexploited profit opportunities go by if they adopt a "buy and hold" strategy.
• D)do better if they purchase loaded mutual funds.

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Definitions:

Environmental Circumstances

The physical, social, and cultural conditions that surround and influence an individual or community.

Relevance

The quality of being closely connected or appropriate to what is being done or considered.

Canadian Psychological Association (CPA)

The national association for the science, practice, and education of psychology in Canada, dedicated to improving the health and welfare of all Canadians.

Established

To have been in existence for a long time and therefore recognized and accepted.