The Efficient Markets Hypothesis Suggests That _______

question 24

Multiple Choice

The efficient markets hypothesis suggests that _______.

• A) active portfolio management strategies are the most appropriate investment strategies
• B) passive portfolio management strategies are the most appropriate investment strategies
• C) either active or passive strategies may be appropriate, depending on the expected direction of the market
• D) a bottom up approach is the most appropriate investment strategy

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Definitions:

Epigenetic Mark

Alterations to DNA and histone proteins that influence gene activity without changing the DNA sequence itself.

Gene

A unit of heredity made up of DNA that is passed from parents to offspring and determines some characteristic of the offspring.

Fraternal Twins

Twins formed from the fertilization of two separate eggs by two different sperm cells, resulting in genetically distinct individuals.

Monozygotic

Refers to twins that are genetically identical, resulting from a single fertilized egg splitting into two.