The Fact That Superior Returns Can Not Be Made by Selling

question 109

Multiple Choice

The fact that superior returns can not be made by selling stocks that cut dividends is evidence of:

• A) weak-form efficiency.
• B) semi-strong-form efficiency.
• C) strong-form efficiency.

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Definitions:

Real GDP

The measurement of a country's economic output adjusted for price changes (inflation or deflation), reflecting the real quantity of goods and services produced.

GDP

Gross Domestic Product, a measure of a country's economic output and performance, representing the total value of all goods and services produced over a specific time period.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to adjust GDP from nominal to real terms.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in terms of constant prices.