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:

Bargaining Power

The power of labour and management to achieve their goals through economic, social, or political influence.

Strike Vote

A collective decision-making process in which union members vote on whether to proceed with a work stoppage or strike as a form of protest.

Lockout

An action taken by employers to prevent employees from entering the workplace, typically during labor disputes.

Strike Votes

A process where unionized workers vote on whether to proceed with a strike, typically as a measure of last resort during collective bargaining disputes.