In Order to Test the Semistrong Form of the Efficient-Market

question 30

Multiple Choice

In order to test the semistrong form of the efficient-market hypothesis,researchers have mostly relied on the:

• A)estimation of the serial correlation coefficients (autocorrelations)for securities and markets.
• B)measurement of the performance of technical trading strategies over the years.
• C)measurement of how rapidly security prices adjust to different news items.
• D)all of the options.

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Definitions:

Stockholders' Equity

Represents the residual interest in the assets of a corporation after deducting liabilities.

Treasury Stock

Shares that were once outstanding in the stock market but were bought back by the issuing company.

Paid-In Capital

Paid-in capital refers to the funds a company has garnered from its shareholders through the sale of stock shares.

Treasury Stock

Shares that were issued and subsequently reacquired by the company, held in the company's treasury and not considered when calculating earnings per share or dividends.