The Semistrong Form of the Efficient Market Hypothesis Maintains All

question 74

Multiple Choice

The semistrong form of the efficient market hypothesis maintains all of the following, except that:

• A)there is no learning lag in the distribution of public information.
• B)all public information is immediately impounded into the value of a security.
• C)technical analysis is helpful in determining whether a stock is overvalued or undervalued.
• D)fundamental analysis cannot outperform the market.

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Definitions:

Temperature Regulation

The physiological and behavioral processes by which living organisms maintain their body temperature within a certain optimal range, despite external temperature changes.

Hypothalamus

A region of the brain that coordinates the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems, and involved in sleep and emotional activity.

Limbic System

A complex set of brain structures located on both sides of the thalamus, involved in processing emotions, motivation, and memory.

Pons

A part of the brain located in the brainstem, critical for relaying signals between the cerebrum and the cerebellum, and involved in functions such as sleep and arousal.