Which of the Following Statements Is True

question 14

Multiple Choice

Which of the following statements is true?

• A)In efficient markets, a stock's price should change with the arrival of new information.
• B)Average stock returns are higher in January than other months.
• C)Studies by Fama and French and others find the fact that returns of high book to market stocks are much higher than low book to market value stocks is consistent with the efficient market hypothesis.
• D)All of the above.
• E)None of the above.

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Definitions:

Cohort

A group of individuals sharing a common characteristic, typically born around the same time, and studied to observe how specific variables affect them over time.

Concept

A mental category used to represent a class or group of objects, people, organizations, events, situations, or relations that share common characteristics or attributes.

Template

A preset model or pattern that serves as a guide for the creation or replication of objects, documents, or designs.

Concepts

General ideas or understandings that are used to group together objects, events, qualities, or abstractions that are similar in some way.