In Tests of the Semistrong-Form Efficient Market Hypothesis, an Adjustment

question 124

Multiple Choice

In tests of the semistrong-form efficient market hypothesis, an adjustment for market effects is carried out by

• A) calculating the historical return.
• B) calculating the market rate of return.
• C) calculating the abnormal rate of return.
• D) calculating the cross-sectional return.
• E) calculating the monthly return.

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Definitions:

Referent Power

Influence derived from being admired, respected, or identified with, encouraging others to follow voluntarily.

Subordinates

Individuals who are lower in rank or position and are under the direction of someone else in an organization or hierarchy.

Target Feeling

The specific emotion or emotional state one aims to achieve or elicit in a given situation or through a particular action.

Position Power

The authority or influence one holds as a result of their rank or role within an organization.