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:

Task Responsibility

Assignment of accountability and authority to a person or team for the completion of a specific task or project component.

Segregation Of Duties

A control activity that aims to reduce the risk of errors and fraud by dividing responsibilities among different people in an organization.

Collusion

A secret agreement or cooperation among parties for a fraudulent, illegal, or deceitful purpose, especially to manipulate prices or competition in the market.

Merchandise Management

It involves the planning and control of the purchasing, handling, storage, and sale of goods in a retail setting to maximize profits.