The Efficient Market Hypothesis Implies That

question 52

Multiple Choice

The efficient market hypothesis implies that

• A)all investments should earn the same average rate of return over time.
• B)any investment should earn a normal return commensurate with the investment's risk.
• C)efficient markets will tend to have fixed prices from one day to the next.
• D)stock prices are only efficient when all investors review their portfolios on a daily basis.
• E)investors must be disinterested in their investments for the markets to be efficient.

Understand the conditions under which a revocation of an offer becomes effective.

Recognize the implications of silence as a means of acceptance in forming a contract.

Analyze how cultural differences influence the interpretation and enforcement of contracts.

Identify the conditions under which a contract can be considered binding, including the role of acceptance.

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Definitions:

U.S. Dollar

The official currency of the United States, widely used for international transactions and as a reserve currency.

Collect Like Terms

Combining algebraic terms with the same variable factors into a single term by adding or subtracting their coefficients.

Simplify

To make something less complicated or easier to understand, often by reducing complexity or eliminating unnecessary parts.

Students Per Teacher

Students per teacher is a ratio that measures the average number of students for which a single teacher is responsible in an educational setting.