An Implication of the Efficient Market Hypothesis Is

question 3

Multiple Choice

An implication of the efficient market hypothesis is

• A)securities prices are randomly determined
• B)stock prices reflect historical information
• C)few investors can expect to outperform the market over a period of time
• D)after adjusting for risk, money market securities offer superior returns

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Definitions:

Demand

The amount of a product or service that buyers are prepared and capable of buying at different price levels over a specified time frame.

Consumption

The use of goods and services by households or individuals, which is a primary component of economic activity.

Income

The financial money received, especially on a regular basis, for work, through investments, or from business activities.

Steak

A high-quality cut of meat taken from the hindquarters of an animal, typically beef, prepared by grilling, frying, or broiling.