The Word "Efficient" in the Term "Efficient Markets Hypothesis" Refers

question 30

Multiple Choice

The word "efficient" in the term "efficient markets hypothesis" refers to the idea that

• A)fundamental analysis is an efficient way to go about choosing which stocks to buy or sell.
• B)stock prices move upward and downward "efficiently," rather than following a "random walk."
• C)the stock market is "informationally efficient."
• D)companies employ officers and managers who are well-qualified to perform their jobs.

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Definitions:

American Exchange Student

A student from the United States who goes abroad to study at a foreign institution for a certain period, aiming to gain international experience and education.

British Host

A term that could be used to refer to a host in Britain, possibly indicating specific cultural or social hosting practices characteristic of British hospitality; otherwise, if considered out of context, write NO.

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The process by which individuals adjust their communication styles to match or oppose others in a conversation.

Social Decentering

An interpersonal cognitive process where an individual attempts to understand the thoughts, feelings, and perspectives of others, without necessarily having to agree with them.