If the Efficient Market Hypothesis Is True, Price Changes Are

question 110

True/False

If the efficient market hypothesis is true, price changes are independent and biased.

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Definitions:

Probability

A measure of the likelihood that an event will occur, ranging from 0 (impossibility) to 1 (certainty).

Combinations

The selection of items from a collection such that the order of selection does not matter.

Class

In the context of data, a grouping or categorization according to shared characteristics; in education, an organized period of instruction.

Simple Events

Events that cannot be broken down any further into simpler components in the context of probability.