In Tests of the Semistrong-Form EMH, It Is Not Necessary

question 16

True/False

In tests of the semistrong-form EMH, it is not necessary to use risk-adjusted rates of return.

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Definitions:

Equity Accounts

Accounts that represent the owner's interest in the assets of a company, after deducting liabilities, commonly consisting of stock and retained earnings.

Non-controlling Interests

A minority stake in a company held by investors who do not have a controlling interest or majority of the voting rights.

Subsidiary Entity

A company that is controlled or owned, either in part or fully, by another company, known as its parent company.

Parent Entity

A company that has control over one or more subsidiaries, owing enough of their stock to influence their operations.