The Debate Over Whether Markets Are Efficient Will Probably Never

question 2

Multiple Choice

The debate over whether markets are efficient will probably never be resolved because of ________.

• A)the lucky event issue
• B)the magnitude issue
• C)the selection bias issue
• D)all of the above
• E)none of the above

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Definitions:

Benchmark Market Portfolio

A standard or reference against which the performance of a security, mutual fund, or investment manager can be measured.

Risk Premium

The extra return expected by an investor for holding a risky investment over a risk-free one.

Well-Diversified Portfolios

Investment portfolios that contain a wide variety of assets, aiming to minimize risk by spreading investments across different sectors or asset classes.