A Finding That _________ Would Provide Evidence Against the Semistrong

question 67

Multiple Choice

A finding that _________ would provide evidence against the semistrong form of the efficient market theory.

• A)low P/E stocks tend to have positive abnormal returns
• B)trend analysis is worthless in determining stock prices
• C)one can consistently outperform the market by adopting the contrarian approach exemplified by the reversals phenomenon
• D)A and B
• E)A and C

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Definitions:

Positivism

A philosophical approach asserting that knowledge should be based on empirical and scientific evidence rather than theories.

Scientific Revolution

The period in history during the 16th and 17th centuries marked by major advances in science, transforming views of society and the natural world.

Ascribed Status

A social position assigned to an individual at birth or assumed involuntarily later in life, often based on race, ethnicity, gender, and family background.

Oprah Winfrey

An influential American media executive, actress, talk show host, television producer, and philanthropist, known for her talk show "The Oprah Winfrey Show."