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.

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Definitions:

Organizational Goals

The strategic objectives set by an organization, aimed at guiding and motivating its members towards collective achievements.

Second-wealthiest

Referring to the individual or entity ranked immediately after the wealthiest in terms of total wealth or assets.

Income

Income earned regularly from work or investments.

Relational Architecture

The design and structure of relationships within an organization, including how communication and interaction are facilitated.