Another Way to State the Efficient Market Hypothesis Is That

question 20

Multiple Choice

Another way to state the efficient market hypothesis is that in an efficient market,

• A) unexploited profit opportunities will never exist as market participants, such as arbitrageurs, ensure that they are instantaneously dissipated.
• B) unexploited profit opportunities will not exist for long, as market participants will act quickly to eliminate them.
• C) every financial market participant must be well informed about securities.
• D) only A and C of the above.

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Definitions:

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A field of psychology that focuses on observable behaviors and disregards internal processes such as thoughts and emotions.

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An approach in psychology focusing on the mental processes and behaviors of individuals, encompassing various theories and methodologies.

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An approach in psychology focusing on observable behaviors, and discounting mental activities.