The Efficient Market Hypothesis

question 159

Multiple Choice

The efficient market hypothesis:

• A)supports the validity of technical analysis but not fundamental analysis.
• B)supports the validity of fundamental analysis but not technical analysis.
• C)supports the validity of both technical and fundamental analysis.
• D)supports the validity of neither technical nor fundamental analysis.
• E)is unrelated to the disciplines of fundamental and technical analysis.

---

Definitions:

Full Employment

A situation where all available labor resources are being utilized in the most economically efficient way, with no involuntary unemployment.

Property Rights

Legal rights to possess, use, and dispose of assets including physical, intellectual, and real property.

Mutually Agreeable Transactions

Exchanges between parties that both sides consent to because they are beneficial.

Equal Distribution

The concept of ensuring that resources, wealth, or opportunities are evenly distributed among all members of society.