The Strong-Form Efficient Market Implies That

question 64

Multiple Choice

The strong-form efficient market implies that:

• A)no investors can consistently beat the market after adjusting for risk differences
• B)stock prices reflect all public and private knowledge
• C)even corporate officers and insiders cannot earn above-average, risk-adjusted profits
• D)more than oneall of the above

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Definitions:

Statistical Techniques

Mathematical methods applied to analyze, interpret, and make inferences from data.

Positive Statement

An objective statement that can be tested, based on factual information and data, without any value judgments.

Industrial Society

A society characterized by a reliance on mechanized labor to create material goods, often associated with a significant shift from agricultural to industrial economies.

Normative Question

A question that addresses what ought to be, focusing on subjective judgments or prescriptions about economic policies.