If Statistical Tests of Stock Returns Over Time Support the Efficient

question 81

Multiple Choice

If statistical tests of stock returns over time support the efficient market hypothesis the resulting correlations should be

• A) Positive.
• B) Negative.
• C) Zero.
• D) Lagged.
• E) Skewed.

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Definitions:

Biological Relatives

Individuals who are related to one another through hereditary connections, including parents, siblings, and extended family members.

Heritability Coefficient

A statistical estimate that indicates the proportion of the variance in a trait which is attributable to genetic variation within a population.

Non-twin Relatives

Family members who are not twins but share a genetic relationship, such as siblings or cousins.

Traits

Enduring characteristics or tendencies that define an individual's behavior, thought patterns, and emotional responses.