The Efficient Markets Hypothesis Says That Beating the Market Consistently

question 43

Multiple Choice

The efficient markets hypothesis says that beating the market consistently is

• A)impossible.Many studies find that beating the market is,at best,extremely difficult.
• B)impossible.Many studies find that beating the market is relatively easy.
• C)relatively easy.Many studies find that beating the market is,at best,extremely difficult.
• D)relatively easy.Many studies find that beating the market is relatively easy.

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Definitions:

Cost of Goods Sold

Costs directly linked to the production of goods a company sells, such as materials and labor.

Direct Materials Purchases

The total cost of raw materials bought that are intended to be used in the manufacture of products.

Factory Overhead

All indirect costs incurred during the manufacturing process, excluding direct labor and direct materials.

Capital Expenditures Budget

A plan for a company's spending on fixed assets, such as buildings or equipment, over a period.