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:

Positively Skewed

A distribution of data where most of the values gather on the left side, with the tail extending to the right, indicating that the mean is greater than the median.

Median

The middle value in a sorted list of numbers, which separates the higher half from the lower half.

Mode

The value that appears most frequently in a data set, representing the highest peak in a distribution.

Extreme Values

The lowest or highest points in a data set, which are significant for analyzing behavior in statistical models, particularly in risk management and survival analysis.