According to the Efficient Markets Hypothesis, Who Should Earn the Highest

question 20

Multiple Choice

According to the efficient markets hypothesis, who should earn the highest risk-adjusted return on stocks?

• A)a financial expert who can devote considerable time to research
• B)the average investor who doesn't do too much research
• C)someone throwing darts at possible stock picks
• D)all of the above should earn the same average return

---

Definitions:

Sales Increase

An uptick in the volume or value of products or services sold by a business over a given period.

Variability

How much scores differ from one another or, put another way, the amount of spread or dispersion in a set of scores.

Within-group Differences

Variability or disparities found within a single group's members rather than between different groups.

Between-group Differences

Refers to variations or discrepancies in characteristics or outcomes between distinct groups in a study.