According to the Semi-Strong Form Efficient: ____________

question 34

Multiple Choice

According to the semi-strong form efficient: ____________.

• A)stock prices do not rapidly adjust to new information
• B)future changes in stock prices cannot be predicted from any information that is publicly available
• C)corporate insiders should have no better investment performance than other investors even if allowed to trade freely
• D)arbitrage between futures and cash markets should not produce extraordinary profits

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Definitions:

Loan

Money that is borrowed from a bank, financial institution, or individual under the condition that it will be paid back with interest.

Compounded Quarterly

Compounded quarterly refers to calculating interest on the principal amount and the accumulated interest every quarter, or four times a year.

Quarterly Withdrawals

Withdrawals from an account or fund that occur four times each year, typically every three months.

Education Fund

A savings or investment account set aside for the purpose of funding educational expenses.