Anomalies Related to the Semi-Strong Form of the Efficient Market

question 34

Multiple Choice

Anomalies related to the semi-strong form of the efficient market hypothesis indicate that:

• A)the market is truly efficient.
• B)high returns are very difficult to achieve.
• C)the market is less than perfectly efficient.
• D)public information is almost useless.

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Definitions:

Cost of Goods Sold

The immediate outlays necessary for the crafting of goods a business sells, involving materials and labor.

Variable Selling Expenses

Selling expenses that fluctuate with sales volume, such as commissions and shipping fees.

Contribution Margin

The amount by which a product's selling price exceeds its total variable cost, indicating how much contributes to covering fixed costs and generating profit.

Variable Selling Expense

Costs that vary directly with the volume of sales, such as commissions or shipping fees.