The Semi-Strong Form of the Efficient Market Hypothesis States That

question 4

Multiple Choice

The semi-strong form of the efficient market hypothesis states that:

• A) the efficient market hypothesis is only half true.
• B) professional investors make superior profits but amateurs can't.
• C) stock prices do not follow a random walk.
• D) prices reflect all publicly available information.

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Definitions:

Resistance Price

A price level at which an asset meets pressure on its way up due to a concentration of selling interest, often used in technical analysis of financial markets.

Willingness to Pay

The maximum amount an individual or entity is prepared to spend to purchase a good or service or to avoid something undesirable.

Market Demand Curve

A graphical representation of the quantity of goods demanded at various prices by all consumers in the market.

Consumer Surplus

The divergence in the anticipated price for a good or service by consumers and the actual price they pay.