The Efficient Markets Hypothesis Implies That Active Investing Strategies Can

question 98

True/False

The efficient markets hypothesis implies that active investing strategies can outperform passive investing strategies.

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Definitions:

Average Costs

The total costs of production divided by the quantity of output produced, representing the cost per unit of output.

Output

The quantity of goods or services produced by a firm or industry within a certain period.

Declines

Decreases in the value, amount, or quality of something.

Zero Slope

A horizontal line on a graph, indicating that there is no change in the y-value (vertical) regardless of the change in the x-value (horizontal); it represents a constant function.