According to the Semistrong-Form Efficient Market Hypothesis, Which of the Following

question 42

Multiple Choice

According to the semistrong-form efficient market hypothesis, which of the following types of information are fully reflected in stock prices?

• A) rates of return, trading volume, and news about the economy
• B) dividend and earnings announcements
• C) rates of return, trading volume, and block trades
• D) earnings announcements and rates of return
• E) All of these are correct.

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Definitions:

Societal Institution

An established organizational structure or system in society that governs the behavior and expectations of its members.

Economy

The system by which goods and services are produced, distributed, and consumed in a society.

Production

The process of creating goods or services through the combination of labor, materials, and technology.

Distribution

Involves the process of making goods, services, or resources available to consumers or beneficiaries.