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.

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Definitions:

Generalize

The cognitive process of extracting common properties from specific examples to form a general concept or conclusion.

Central Asia

Central Asia is a region located primarily in the center of the Asian continent, encompassing countries such as Kazakstan, Uzbekistan, Tajikistan, Kyrgyzstan, and Turkmenistan, known for its cultural and historical crossroads.

Conceptual

Related to or based on mental concepts, often used in contrast with empirical or direct observation.

Categorization Methods

Various techniques or systems used to group objects, people, or concepts into categories based on shared characteristics.