Which of the Following Is NOT True About the Efficient

question 2

Multiple Choice

Which of the following is NOT true about the efficient market hypothesis?

• A)Market prices reflect all available information at any given time.
• B)Market prices do not fluctuate dramatically.
• C)Market prices are considered fair.
• D)Investors cannot continuously earn an excess return over and above the risk-adjusted return.

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Definitions:

Formal

Pertaining to or following established form, custom, or rule, often characterized by seriousness or conventionality.

Myers-Briggs Type Indicator

A personality assessment tool that categorizes individuals into 16 distinct personality types based on preferences in how they perceive the world and make decisions.

Dichotomies

A division or contrast between two things that are represented as being opposed or entirely different.

MMPI-A

The Minnesota Multiphasic Personality Inventory-Adolescent, a psychological assessment tool designed specifically for teenagers.