According to the Efficient Market Hypothesis,which of the Following Statements

question 16

Multiple Choice

According to the efficient market hypothesis,which of the following statements is not correct?

• A)Stock market prices tend to rise today if they rose yesterday.
• B)As judged by the typical person in the market,all stocks are fairly valued all the time.
• C)At the market price,the number of shares being offered for sale matches the number of shares people want to buy.
• D)All of the above statements are incorrect.

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Definitions:

Cochlea

A spiral-shaped, fluid-filled inner ear structure that is essential for hearing, converting sound vibrations into nerve impulses.

Snail-Shaped

Describing something that resembles the spiral shape of a snail's shell, often used in reference to the cochlea in the ear.

Hair Cells

Sensory cells found in the inner ear that are critical for hearing and balance, converting mechanical sound vibrations into electrical signals.

Permanent Hearing Loss

A lasting inability to hear partially or completely in one or both ears, which can result from genetic factors, aging, exposure to loud noise, or certain diseases.