An Implication of the Efficient Market Hypothesis Is That ________

question 88

Multiple Choice

An implication of the efficient market hypothesis is that ________.

• A) high-beta stocks are consistently overpriced
• B) low-beta stocks are consistently overpriced
• C) nonzero alphas will quickly disappear
• D) growth stocks are better buys than value stocks

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Definitions:

Violation

The act of disregarding or not complying with a law, rule, or agreement.

Invasion of Privacy

Unauthorized intrusion into the personal life or data of an individual which violates their rights.

Tort

A civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act.

Legal Standard

A principle or guideline established by law that is used to judge the legality of actions or decisions in judicial and administrative proceedings.