The Efficient Markets Hypothesis Implies That

question 67

Multiple Choice

The efficient markets hypothesis implies that

• A)building a portfolio based on a published list of the "most respected" companies is likely to produce a better-than-average return.
• B)if a stock rose in price last year,it is likely to rise in price this year.
• C)managed mutual funds should generally outperform indexed mutual funds.
• D)None of the above are correct.

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Definitions:

Major Organic Product

The primary product formed in the greatest quantity during a chemical reaction involving organic compounds.

Alcohol Dehydrogenase

An enzyme that facilitates the oxidation and reduction of alcohols and aldehydes within the body.

Ethanol

A type of alcohol found in alcoholic beverages, produced by the fermentation of sugars.

Major Organic Product

The main yield of an organic chemical reaction, distinguished by its premier volume.