The Efficient Market Hypothesis Would Lead to the Conclusion That

question 20

Multiple Choice

The efficient market hypothesis would lead to the conclusion that

• A)people who win big in the stock market are more lucky than smart.
• B)only the highly skilled investors should put their money into the stock market.
• C)markets are not good anticipators of events that affect stock value.
• D)people who win big in the stock market are usually very good investors.

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Definitions:

Necessities

Essential items and services required for basic human survival and well-being, such as food, water, shelter, and healthcare.

Federal Income Taxes

Taxes imposed by the government on the income of individuals, corporations, and other entities.

Consumer Confidence

is a measure of how optimistic or pessimistic consumers are about their financial prospects and the state of the economy, impacting their spending and saving behaviors.

Psychological Impact

The effect that an event, action, or circumstance has on the mental state or emotional wellbeing of an individual or group.