Tests of Return Predictability Are Designed To

question 54

Multiple Choice

Tests of return predictability are designed to:

• A)detect systematic patterns in asset prices.
• B)generate abnormal returns.
• C)differentiate between the forms of efficiency.
• D)do none of the given options.

---

Definitions:

IQ and Achievement Tests

Standardized tests designed to measure intellectual potential (IQ) and academic skills or knowledge in specific areas (achievement).

Convergent Thinking

A cognitive process in which a person attempts to find a single, correct solution to a problem.

Divergent Thinking

An intellectual strategy or procedure aimed at creating original concepts by considering a wide range of solutions.

Supply and Demand

The fundamental economic concept that describes the relationship between the availability of goods (supply) and the desire for them (demand), influencing price and availability.