The Hypothesis That Investors Cannot Consistently Earn Positive Excess Returns

question 76

Multiple Choice

The hypothesis that investors cannot consistently earn positive excess returns is known as the __________ hypothesis.

• A) Technical analysis
• B) Market efficiency
• C) Risk-return
• D) Fundamental analysis
• E) Market breadth

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Definitions:

SST

In the context of statistics, often short for Sum of Squares Total, representing the total variability of a dataset.

Estimated Regression Equation

A formula that predicts a dependent variable based on one or more independent variables.

Sales

A measure of the total amount of goods and services sold by a company in a specific period.

Coefficient Of Determination

A statistical measure that explains how much the variance of one variable explains the variance of the second variable.