Which of the Following Is Empirical Evidence Indicating That the Efficient

question 57

Multiple Choice

Which of the following is empirical evidence indicating that the efficient market hypothesis may not always be generally applicable?

• A) Small-firm effect
• B) January effect
• C) Market overreaction
• D) All of the above

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Definitions:

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s in response to the Great Depression.

1929

The year marked by the Wall Street Crash, leading to the onset of the Great Depression impacting the global economy.

1933

The year notable for the depth of the worldwide Great Depression and the implementation of the New Deal in the United States.

Transfer Payment

A payment made by governments to individuals without any services or goods being received in return, often part of social welfare programs.