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.

---

Definitions:

REM Sleep

A phase of sleep characterized by rapid eye movement, vivid dreaming, and increased brain activity.

Physical Toll

The impact or wear on the body resulting from stress, strain, or overexertion, often leading to fatigue or injury.

Productive

Capable of producing ample results, work, or yielding beneficial outcomes, often through creativity or efficiency.

Latent Content

The hidden psychological meaning of a dream, as opposed to the manifest content, which is the dream as it is remembered.