The Efficient Markets Hypothesis Suggests That _______

question 24

Multiple Choice

The efficient markets hypothesis suggests that _______.

• A) active portfolio management strategies are the most appropriate investment strategies
• B) passive portfolio management strategies are the most appropriate investment strategies
• C) either active or passive strategies may be appropriate, depending on the expected direction of the market
• D) a bottom up approach is the most appropriate investment strategy

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Definitions:

Wilmot Proviso

An unsuccessful 1846 proposal in the United States aiming to ban slavery in territory acquired from Mexico.

Immigration Policy

The laws, regulations, and procedures established by a country to control the entry and stay of foreigners within its borders.

Japanese Ports

Refers to the seaports of Japan, which became significant in the mid-19th century as Japan ended its period of national isolation and opened to international trade and influence.

Matthew Perry

A U.S. Navy Commodore who played a key role in opening Japan to the West with the Kanagawa Treaty in 1854, ending Japan's two centuries of isolation.