Which of the Following Statements Is TRUE If the Efficient

question 68

Multiple Choice

Which of the following statements is TRUE if the efficient market hypothesis holds?

• A)It implies perfect forecasting ability.
• B)It implies that the market is irrational.
• C)It implies that prices do not fluctuate.
• D)It implies that prices reflect all available information.
• E)It implies that tomorrow's price will be the same as today's price.

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Definitions:

Sample Proportion

The fraction of the total sample that represents a particular trait or characteristic.

Normal Distribution

A probability distribution that is symmetric around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Sample Size

The number of individual observations or elements taken from a population to form a sample for the purpose of statistical analysis.

Standard Deviation

A metric used to quantify the spread of values in a dataset, demonstrating how far the values deviate from the central value.