The Word "Efficient" in the Term "Efficient Markets Hypothesis" Refers

question 358

Multiple Choice

The word "efficient" in the term "efficient markets hypothesis" refers to the idea that

• A)fundamental analysis is an efficient way to go about choosing which stocks to buy or sell.
• B)stock prices move upward and downward "efficiently," rather than following a "random walk."
• C)the stock market is "informationally efficient."
• D)All of the above are correct.

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Definitions:

Practices

Routinely performed actions or activities by individuals or groups in specific contexts, forming the basis of societal and cultural norms.

Organization

A group of people structured and managed to meet a particular goal or to carry out a specific set of tasks, often with a defined hierarchy and rules.

Glocalization

The practice of conducting business according to both local and global considerations, a blend of "globalization" and "localization."

Cultural Imperialism

The practice of promoting and imposing a culture, usually that of a dominant nation, over a less powerful society.