The Semi-Strong Form of the Efficient Market Hypothesis Implies That

question 76

Multiple Choice

The semi-strong form of the efficient market hypothesis implies that ____________ generate abnormal returns and ____________ generate abnormal returns.

• A) Technical analysis cannot; fundamental analysis can
• B) Technical analysis can; fundamental analysis can
• C) Technical analysis can; fundamental analysis cannot
• D) Technical analysis cannot; fundamental analysis cannot

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Definitions:

Painful Shocks

Reference to physical or emotional distress experienced suddenly and sharply, often used in experiments or therapeutic contexts.

Affiliate

Someone who is officially attached or connected to an organization, often for the purposes of mutual benefit.

Subjects

Individuals or entities that are the focus of scientific research or experiments.

Festinger's Social Comparison Theory

A psychological theory proposing that individuals determine their own social and personal worth based on how they compare themselves to others.