One Important Implication of the Efficient Markets Hypothesis Is That

question 9

Multiple Choice

One important implication of the efficient markets hypothesis is that most investors

• A)should avoid active trading.
• B)can benefit by purchasing high-beta stocks.
• C)should trade actively to help ensure the highest overall gain in their portfolios.
• D)should hold IPO stock issues for the long term.

Understand the repercussions of attempting to rapidly pay off the national debt and the effects of fiscal policy measures during recessionary periods.

Understand the factors influencing creativity and motivation.

Differentiate between exploitative innovation and other forms of innovation.

Recognize and apply the steps in the decision-making model.

---

Definitions:

Recorded Sound

Audio that has been captured and stored electronically for playback.

Adjust Volume

The process of changing the loudness of audio output on a device such as a computer, phone, or speaker.

Transitions

Effects that are used in presentation software to smoothly move from one slide to another.

Slide Show

A presentation format in which a series of images or pages are shown on a screen, typically accompanied by narrative.