If the Efficient Market Hypothesis Holds,investors Should Expect

question 12

Multiple Choice

If the efficient market hypothesis holds,investors should expect:

• A) to earn only a normal return.
• B) to receive a fair price for their securities.
• C) to always be able to pick stocks that will outperform the market averages.
• D) Both to earn only a normal return; and to receive a fair price for their securities.
• E) Both to receive a fair price for their securities; and to always be able to pick stocks that will outperform the market averages.

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Definitions:

Egalitarian

Relating to the principle that all people are equal and deserve equal rights and opportunities.

Sensitivity

The quality or condition of being easily affected, influenced, or harmed by something.

Gender Awareness

The recognition and understanding of one's gender and the social norms, behaviors, and roles associated with gender within a given culture or society.

Concrete External Traits

Observable characteristics that can be easily seen and identified by others in the external environment.