If a Market Is Strong Form Efficient Then

question 11

Multiple Choice

If a market is strong form efficient then:

• A)company insiders are the only investors capable of earning an abnormal profit.
• B)abnormal profits are obtainable by any and all investors.
• C)technical analysts who study past market performance have a market advantage.
• D)all investments should have positive NPVs.
• E)company insiders have no advantage over John Q.Public investor.

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Definitions:

Identity Foreclosure

A psychological term referring to a state in which an individual prematurely commits to an identity without adequate exploration of other options.

Hypothetical Thinking

The ability to consider possibilities, propositions, and scenarios that are not immediately physically present or proven.

Concrete Operational Stage

A stage of cognitive development in Jean Piaget's theory where children aged about 7 to 12 years understand and apply logical operations to concrete situations but not to abstract concepts.

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, where infants learn about the world through sensory experiences and manipulating objects.