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:

Direct Labour

The workforce directly involved in the production of goods or the provision of services.

Cost Of Goods Sold

Expenses directly related to the production of a company’s merchandise for sale, including the cost of labor and materials.

Raw Materials

The basic material from which a product is made, typically used in the manufacturing or production process.

Indirect Cost

Expenses not directly linked to the production of goods or services, such as rent, utilities, and administrative salaries.