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

question 77

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) None of the above.

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Definitions:

Optimal Solution

The best possible outcome or decision that maximizes efficiency, effectiveness, or utility in problem-solving or decision-making contexts.

Origins

The starting points or sources of products, materials, or movements in supply chain and logistics operations.

Destinations

Refers to the end locations where people, goods, or information are aimed to reach.

Degenerate Problems

In mathematical optimization, these are problems where the solution involves degeneracy, which may affect the interpretation or analysis of the solution.