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.

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Definitions:

Employment

A formal relationship between an individual and an employer where the individual performs work under certain conditions in exchange for compensation.

Age Cohort

A group of people who are born around the same time and share similar experiences or sociocultural influences throughout their lives.

Decade

A period of ten years.

Sexual Attractiveness

Qualities or characteristics of an individual that evoke a sexual interest or desire in others.