Which of the Following Observations Would Provide Evidence Against the Weak

question 25

Multiple Choice

Which of the following observations would provide evidence against the weak form of market efficiency?

• A)Mutual fund managers earn superior returns over the past 3 years.
• B)Most pension funds outperformed the market last year.
• C)Investors who trade on inside information make superior returns.
• D)None of the above.

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Definitions:

Consumer

An individual or group who purchases goods and services for personal use.

Seller

An individual or entity that offers a product or service for sale in the marketplace.

Advertising

The action of calling public attention to products, services, needs, etc., especially by paid announcements in print, broadcast, or online media.

Demand Curve

A graph representing the relationship between the price of a good and the quantity demanded by consumers, typically downward-sloping.