According to Proponents of the Efficient-Market Hypothesis, the Best Strategy

question 59

Multiple Choice

According to proponents of the efficient-market hypothesis, the best strategy for a small investor with a portfolio worth $40,000 is probably to

• A) perform fundamental analysis.
• B) exploit market anomalies.
• C) invest in Treasury securities.
• D) invest in derivative securities.
• E) invest in mutual funds.

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Definitions:

Assets

A firm’s economic resources, or items of value that it owns, such as cash, inventory, land, equipment, buildings, and other tangible and intangible things.

Receivables Turnover

Sales divided by accounts receivable.