According to the Efficient Market Hypothesis

question 56

Multiple Choice

According to the efficient market hypothesis

• A) one cannot expect to earn an abnormally high return by purchasing a security.
• B) information in newspapers and in the published reports of financial analysts is already reflected in market prices.
• C) unexploited profit opportunities abound, thereby explaining why so many people get rich by trading securities.
• D) all of the above are true.
• E) only A and B of the above are true.

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Definitions:

Adolescence

Describes the transitional stage of physical and psychological development that typically occurs between childhood and adulthood, characterized by significant changes in body, identity, and social relationships.

Unemployment

The condition of being jobless and actively seeking work, representing a measure of the health of an economy.

Conscientiousness

A personality trait characterized by thoroughness, caution, and the tendency to strive for achievement, self-discipline, and dutifulness.

Motivational Trait

Personal characteristics that influence an individual’s tendency to pursue goals with energy and persistence.