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:

Chartres

A city in France renowned for its Gothic Cathedral of Chartres, a masterpiece of French Gothic architecture.

Late Romanesque

A style in architecture and art of the 11th and 12th centuries in Europe, characterized by semicircular arches, robust structures, and decorative arcading.

High Gothic

A phase of Gothic architecture between the 13th and 14th centuries, characterized by taller structures, pointed arches, and light-filled interiors, exemplified by cathedrals like Chartres and Reims.

Early Gothic

An architectural style that began in the 12th century in France, characterized by pointed arches, ribbed vaults, and flying buttresses.