If the Stock Market Is Semi-Strong Efficient,which of the Following

question 73

Multiple Choice

If the stock market is semi-strong efficient,which of the following statements is correct?

• A) All stocks should have the same expected returns;however,they may have different realized returns.
• B) In equilibrium,stocks and bonds should have the same expected returns.
• C) Investors can outperform the market if they have access to information which has not yet been publicly revealed.
• D) If the stock market has been performing strongly over the past several months,stock prices are more likely to decline than increase over the next several months.
• E) None of the above statements is correct.

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Definitions:

Production Possibilities

A concept in economics that describes the maximum output combinations of goods or services an economy can achieve when all resources are fully and efficiently utilized.

Capital Goods

Long-lasting goods that are used in the production of other goods or services, such as machinery, buildings, and equipment.

Consumer Goods

Tangible items produced for personal use by individuals.

Production Possibilities Curve

A graphical representation showing the maximum number of goods or services that can be produced using limited resources efficiently.