Which of the Following Is Consistent with (Or Explained By)the

question 22

Multiple Choice

Which of the following is consistent with (or explained by) the EMH?

• A)Price bubbles.
• B)Random price movements.
• C)Bull and Bear markets.
• D)Excess returns earned through superior knowledge or skill.
• E)Anomalies, relating to firm size and time-patterns.

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Definitions:

Patent

A form of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a certain number of years.

Pigeon Pies

Traditional British pies made with pigeon meat, often served as a game dish.

Output

The aggregate production of merchandise or services by a corporation, sector, or economy.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.