An Implication of the Efficient Market Hypothesis Is That It

question 68

Multiple Choice

An implication of the Efficient Market Hypothesis is that it is very hard for an actively managed mutual fund to earn above average returns. This is true for all of the following reasons EXCEPT

• A) new information is predictable and therefore already incorporated into the stock prices.
• B) new information is by definition unpredictable, thus hard to incorporate into stock prices.
• C) actively managed mutual funds typically charge fees of about 1.5%.
• D) index funds make no attempt to analyze stocks.

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Definitions:

Nursing Diagnosis

An evaluation by healthcare professionals about the responses of individuals, families, or communities to existing or potential health challenges/life situations.

Focus Charting

A documentation method used in nursing that centers on the patient's concerns, problems, and strengths from a solution-oriented perspective.

Pediatric Unit

A specialized department within a hospital that provides medical care to children and adolescents.

Documentation

The act of recording patient care and treatment activities, ensuring accuracy and legality in healthcare settings.