Research on Semistrong Form Efficient Markets Indicates Which One of the Following

question 36

Multiple Choice

Research on semistrong form efficient markets indicates which one of the following is correct?

• A)Identifying a stock with repetitive price movements is generally the best method of active investing.
• B)Future returns on large company stocks tend to closely follow past pricing patterns.
• C)Buying and holding a broad market index is one of the best investment strategies.
• D)Predicting future stock prices is relatively easy for academic researchers.
• E)Trading costs have little, if any, impact on investment returns.

---

Definitions:

Short-Term Loans

Short-term loans are financial obligations due for repayment within a year, often utilized for immediate cash flow needs.

Fixed Assets

Tangible or intangible items owned by a business that are used over a long period of time for the operation of the business, such as buildings, machinery, or equipment.

Working Capital

The disparity between an organization's immediate assets and liabilities, revealing its short-term fiscal stability and operational effectiveness.

Short-Term Liabilities

Financial obligations of a business that are due to be paid within one year.