Important Implications of the Efficient Market Hypothesis Include Which of the Following

question 49

Multiple Choice

Important implications of the efficient market hypothesis include which of the following?

• A) Future changes in stock prices should, for all practical purposes, be unpredictable.
• B) Stock prices will respond to announcements only when the information in these announcements is new.
• C) Sometimes a stock price declines when good news is announced.
• D) All of the above.
• E) Only A and B of the above.

---

Definitions:

Caipirinhas

A traditional Brazilian cocktail made with cachaça (sugar cane hard liquor), sugar, and lime.

Samba Drums

Percussion instruments originating from Brazil, essential in performing Samba music and used in various cultural and musical contexts.

Generic Value Chain

A high-level model describing the series of steps a business uses to create a product or service, from conceptualization to delivery.

Company Contributions

Financial or in-kind support provided by a business to societal, environmental, or community projects.