The Theory of Efficient Markets Means

question 123

Multiple Choice

The theory of efficient markets means

• A) professional fund managers should be able to consistently beat the market average.
• B) a professional fund manager should really not expect to beat the market average consistently.
• C) a professional fund manager who beats the market average one year should be expected to beat the market average the next year.
• D) a professional fund manager who beats the market average one year should be expected to not beat the market average the next year.

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Definitions:

Theodicy

An effort to explain how the existence of evil is compatible with the existence of God.

Paul Tillich

A German-American theologian and philosopher known for his works on existentialist philosophy and Christian existentialism, notably "The Courage to Be."

Act of Faith

A belief or trust in something that is not based on proof or empirical evidence, often used in religious contexts.

Religious Beliefs

The specific convictions or doctrines that individuals or groups hold concerning the divine or transcendent.