The Efficient Markets Hypothesis Most Clearly Implies That Extra-Market Returns

question 58

Multiple Choice

The efficient markets hypothesis most clearly implies that extra-market returns are:

• A) common in the long run.
• B) rare in the long run.
• C) always attained in the long run.
• D) never attained in the long run.

---

Definitions:

Industry

A group of companies that produce similar products or services, competing within the same market.

Scenario Analysis

A process of assessing future trends by analyzing different conceivable future scenarios, enabling decision-makers to prepare for various potential outcomes.

Future

The time or a period of time following the present moment, yet to occur or come into existence.

Scenario Analysis

A planning tool used to make flexible long-term plans that test strategies against diverse future scenarios.