In Order to Test the Semistrong Form of the Efficient-Market

question 49

Multiple Choice

In order to test the semistrong form of the efficient-market hypothesis, researchers have mostly relied on the

• A)estimation of the serial correlation coefficients (autocorrelations) for securities and markets.
• B)measurement of the performance of technical trading strategies over the years.
• C)measurement of how rapidly security prices adjust to different news items.
• D)All of the options are correct.

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Definitions:

Financial Information

Data related to the financial status and performance of an entity, including assets, liabilities, revenues, and expenses.

Equity Ratio

A financial ratio indicating the proportion of a company's total assets that are financed by shareholders' equity, showing the extent of ownership versus creditor financing.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, showing assets, liabilities, and equity.

Corporation

A legal entity that is separate and distinct from its owners, providing limited liability protection to its shareholders and being capable of owning assets, entering contracts, and sue or being sued.