Which Statement Is Consistent with the Efficient Markets Hypothesis

question 260

Multiple Choice

Which statement is consistent with the efficient markets hypothesis?

• A) The majority of stock mutual funds cannot outperform stock composite indexes.
• B) No mutual funds can outperform stock composite indexes at any time.
• C) No one can earn a return in the stock market.
• D) Technical analysis is the only way to beat the market over time.

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Definitions:

Porosity

The percentage of the volume of a rock, sediment, or soil that is open space (pore space).

Poorly Sorted

Describes sediment or sedimentary rock that contains particles of many different sizes, indicating a rapid and tumultuous deposition.

Rounded Cobbles

Naturally smoothed and rounded small rocks, typically found in riverbeds or beaches, formed by the action of water.

Permeability

A measure of the ability of a material to transmit a fluid.