The Strong Form of the Efficient Market Hypothesis States That

question 53

Multiple Choice

The strong form of the efficient market hypothesis states that:

• A)a market is more than highly efficient; it is actually perfect.
• B)it is easy to beat the market.
• C)mutual fund managers are superior performers.
• D)None of the above

---

Definitions:

Horn Effect

Attributing a variety of negative qualities to those you dislike.

Recency Effect

Tendency to attend to the most recent information observed about another person in order to form or modify an impression.

Interpersonal Perception

Process of selecting, organizing, and interpreting your observations of other people.

Interpretation

The act of explaining or understanding the meaning of something, such as a text, action, or event.