The Efficient Market Hypothesis Suggests That

question 55

Multiple Choice

The efficient market hypothesis suggests that

• A) investors should not try to outguess the market by constantly buying and selling securities.
• B) investors do better on average if they adopt a "buy and hold" strategy.
• C) buying into a mutual fund is a sensible strategy for a small investor.
• D) all of the above are sensible strategies.
• E) only A and B of the above are sensible strategies.

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Definitions:

Formula

A representation of a substance using symbols and numbers to indicate the types and numbers of atoms present.

Lewis Dot Structure

A diagram showing the bonding between atoms of a molecule and the lone pairs of electrons in the molecule.

Chlorine

A toxic, greenish-yellow gas with a strong odor, used as a disinfectant and in the manufacture of various chemicals.

Calcium

A chemical element with the symbol Ca and atomic number 20, an essential component of bones, teeth, and shells, and plays a crucial role in cell signalling.