According to the Efficient Market Hypothesis,which of the Following Statements

question 16

Multiple Choice

According to the efficient market hypothesis,which of the following statements is not correct?

• A)Stock market prices tend to rise today if they rose yesterday.
• B)As judged by the typical person in the market,all stocks are fairly valued all the time.
• C)At the market price,the number of shares being offered for sale matches the number of shares people want to buy.
• D)All of the above statements are incorrect.

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Definitions:

Crowd

A temporary gathering of people in a public place; members might interact but do not identify with each other and will not remain in contact.

Aggregate

A collection or sum of many individual elements, items, or variables often used in the context of data analysis or statistics.

Category

A class or division of people or things regarded as having particular shared characteristics or attributes.

Authority

The right or power to enforce rules, judgments, or command influence over others.