Which Statement Regarding the Efficient Markets Hypothesis Is True

question 32

Multiple Choice

Which statement regarding the efficient markets hypothesis is true?

• A)If a market is strong-form efficient, this implies that the returns on a firm's bonds and stocks should be identical.
• B)If a market is weak-form efficient, this implies that all public information is rapidly incorporated into market prices.
• C)If your uncle earned a return higher than the overall stock market last year, this is evidence that the stock market is inefficient.
• D)If a market is weak-form efficient, this implies that analyzing its past price history will not enable one to earn an above-normal rate of return on the stock in the future.

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