Research on Semistrong Form Efficient Markets Indicates Which One of the Following

question 36

Multiple Choice

Research on semistrong form efficient markets indicates which one of the following is correct?

• A)Identifying a stock with repetitive price movements is generally the best method of active investing.
• B)Future returns on large company stocks tend to closely follow past pricing patterns.
• C)Buying and holding a broad market index is one of the best investment strategies.
• D)Predicting future stock prices is relatively easy for academic researchers.
• E)Trading costs have little, if any, impact on investment returns.

---

Definitions:

Somatic Nervous System

The part of the peripheral nervous system that handles voluntary control of body movements via skeletal muscles, and conveys sensory and motor information to and from the central nervous system.

Cognitive Appraisal

A mental process through which people evaluate the significance and meaning of events and situations for their well-being.

Richard Lazarus

A psychologist known for his research on stress and emotion, particularly for developing the appraisal theory of stress.

Robert Zajonc

A psychologist known for his theories on the interplay between emotions and cognitive processes.