The Efficient-Market Hypothesis

question 30

Multiple Choice

The efficient-market hypothesis

• A) implies that security prices properly reflect information available to investors.
• B) has little empirical validity.
• C) implies that active traders will find it difficult to outperform a buy-and-hold strategy.
• D) has little empirical validity and implies that active traders will find it difficult to outperform a buy-and-hold strategy.
• E) implies that security prices properly reflect information available to investors and that active traders will find it difficult to outperform a buy-and-hold strategy.

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Definitions:

Grand Apartheid

A phase of South Africa's apartheid policy focusing on maintaining white dominance and segregating communities by race on a large scale.

Informal Racism

Subtle, often unspoken or unrecognized prejudices and discriminatory practices that exist within society without formal acknowledgement.

Police Interactions

Encounters or engagements between police officers and members of the public, which can range from informational conversations to law enforcement actions.

Racism In Police Decision-Making

The influence of racial bias in the judgments and actions taken by law enforcement officers.