The Word "Efficient" in the Term "Efficient Markets Hypothesis" Refers

question 358

Multiple Choice

The word "efficient" in the term "efficient markets hypothesis" refers to the idea that

• A)fundamental analysis is an efficient way to go about choosing which stocks to buy or sell.
• B)stock prices move upward and downward "efficiently," rather than following a "random walk."
• C)the stock market is "informationally efficient."
• D)All of the above are correct.

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Definitions:

Psychomotor Disturbance

A disruption or impairment in the ability to control movements or perform tasks requiring motor coordination.

Loss Of Appetite

A decreased desire to eat, which can be due to various factors including emotional distress, illness, or medication side effects.

Difficulty In Concentrating

A common cognitive issue where an individual finds it challenging to focus their attention on specific tasks or for an extended period of time.

Neuroticism

A personality trait characterized by anxiety, fear, moodiness, worry, envy, frustration, jealousy, and loneliness.