If the Stock Market Is Semi-Strong Efficient,which of the Following

question 73

Multiple Choice

If the stock market is semi-strong efficient,which of the following statements is correct?

• A) All stocks should have the same expected returns;however,they may have different realized returns.
• B) In equilibrium,stocks and bonds should have the same expected returns.
• C) Investors can outperform the market if they have access to information which has not yet been publicly revealed.
• D) If the stock market has been performing strongly over the past several months,stock prices are more likely to decline than increase over the next several months.
• E) None of the above statements is correct.

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Definitions:

Circumstantial Evidence

Indirect evidence that implies a fact but does not directly prove it.

Direct Evidence

Evidence that directly proves a fact without needing inference or presumption.

Court

A tribunal, often a governmental institution, with the authority to adjudicate legal disputes between parties and carry out the administration of justice.

Relevant Evidence

Information presented in court that directly relates to the facts in dispute and can help prove or disprove a point.