Which of the Following Observations Provides Evidence Against Strong-Form Market

question 37

Multiple Choice

Which of the following observations provides evidence against strong-form market efficiency?

• A) Some mutual funds outperformed the market in 1997.
• B) Managers trading in their own stock obtain superior returns.
• C) You cannot make superior profits by trading stocks after earnings reports are issued.
• D) Stock prices follow a random walk.

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Definitions:

Nonfinancial Rewards

Benefits provided to employees that do not involve monetary compensation, such as recognition, flexible working hours, and professional development opportunities.

Corporate America

A colloquial term referring to the United States' business sector, particularly large companies and corporations.

Comparable Level

A standard of measurement or quality used to compare the attributes of products, services, or performance.

Mental Stamina

The ability to sustain prolonged mental effort required to overcome obstacles or to navigate difficult or complex situations.