Efficient-Market Hypothesis Is the Theory Describing the Behavior of an Assumed

question 44

True/False

Efficient-market hypothesis is the theory describing the behavior of an assumed "perfect" market in which securities are typically in equilibrium, security prices fully reflect all public information available and react swiftly to new information, and, because stocks are fairly priced, investors need not waste time looking for mispriced securities.

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Definitions:

Internal

Located within or happening inside a body, mind, or institution.

External

Pertaining to or relating to the outside or exterior part of something.

Electrical Stimulation

A therapeutic or analysis technique involving the application of electrical impulses to nerves or muscles.

EEG

Electroencephalography, a noninvasive method to record electrical activity of the brain via electrodes placed on the scalp.