You Are Reading the Most Recent Issue of the Wall

question 113

Multiple Choice

You are reading the most recent issue of the Wall Street Reporter and Review and learn of a mutual fund manager who has outperformed the market over the past five years by at least 6 percent per year. Which of the following would make it difficult to argue this shows the stock market is not efficient?
I. The dumb luck problem.
II. The data snooping problem.
III. The risk-adjustment problem.
IV. The relevant information problem.

• A) I and III only
• B) I and II only
• C) II and IV only
• D) I, II, and III only
• E) I, II, and IV only

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Definitions:

Creative Problem Solving

An approach to finding innovative solutions to complex problems through creativity, brainstorming, and flexible thinking.

Stages

Sequential phases or steps in a process or development.

Directive Facilitator

A facilitator who leads a group by providing explicit instructions or directions to guide the process or discussion.

Facilitative Skills

Abilities that help to make a process easier or more achievable, often used in the context of leadership or group dynamics.