The Efficient Market Hypothesis

question 10

Multiple Choice

The efficient market hypothesis

• A) is based on the assumption that prices of securities fully reflect all available information.
• B) holds that the expected return on a security equals the equilibrium return.
• C) both A and B.
• D) neither A nor B.

---

Definitions:

Social Honor

Social honor is the esteem, respect, or reverence accorded by a community to individuals, practices, or positions considered superior or virtuous.

Class Systems

Social stratification based on both social and economic status, which often determines access to resources, opportunities, and privileges within a society.

Caste Systems

A form of social stratification characterized by hereditary transmission of a lifestyle, occupation, and social status, with little to no mobility.

Stratification

The division of society into classes that have unequal access to resources and power.