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:

Smoot-Hawley

Refers to the Smoot-Hawley Tariff Act of 1930, which raised U.S. import tariffs on thousands of goods, leading to significant trade reductions worldwide.

Trade Restrictions

Measures implemented by governments to regulate or limit international trade, including tariffs, quotas, and embargoes.

Domestic Industries

Industries that produce goods or services within a country’s borders, serving the local economy.

National Industrial Recovery Act

A 1933 U.S. law aimed at boosting economic recovery during the Great Depression by regulating industry standards and promoting fair wages and hours for workers.