In a Perfectly Efficient Market the Best Investment Strategy Is

question 74

Multiple Choice

In a perfectly efficient market the best investment strategy is probably a/an

• A) active strategy
• B) passive strategy
• C) asset allocation
• D) market timing

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Definitions:

General Adaption Syndrome

A three-stage model (alarm, resistance, exhaustion) describing the physiological changes the body undergoes in response to chronic stress.

Immune Deficiencies

Situations in which the ability of the immune system to combat infectious diseases and cancer is weakened or completely lacking.

Stress Reaction

The physical, mental, or emotional response to an event or condition that disturbs the balance or equilibrium of a person's state.

Interstate

Pertaining to the system of highways that connect major cities across states in the United States, also used to describe anything occurring between states.