If Security Markets Are Totally Efficient,the Best Common Stock Strategy

question 2

Multiple Choice

If security markets are totally efficient,the best common stock strategy to take is:

• A)an asset allocation approach.
• B)the modern portfolio theory.
• C)an active strategy.
• D)a passive strategy.

---

Definitions:

Written Express Warranty

A clearly stated promise by a seller regarding the condition, performance, or quality of a product, documented in a written format.

Warranty Disclosure

The act of revealing or making known any warranties, guarantees, or conditions related to a product or service.

Activate Warranty

The process of making a warranty valid or enforceable, often by registering a product or service with the manufacturer or provider.

Third-Party Beneficiaries

Individuals or entities that, although not a direct party to a contract, stand to benefit from the contract's execution or terms.