Which Principle Explains Why It Is Hard to Beat the Market

question 132

Multiple Choice

Which principle explains why it is hard to beat the market?

• A) technical investing principle
• B) efficient markets hypothesis
• C) systematic risk evaluation principle
• D) buy and hold principle

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Definitions:

Marginal Cost Curve

A graphical representation showing how the cost of producing one more unit of a good changes as production increases.

Industry Supply Curve

A graphical representation showing the relationship between the price of a good and the total output of the industry as a whole.

Price of An Input

The cost associated with purchasing goods or services used in the production process.

Breaking Even

The point at which total revenues exactly equal total expenses, resulting in no net profit or loss.