An Implication of the Efficient Market Hypothesis Is That ________

question 88

Multiple Choice

An implication of the efficient market hypothesis is that ________.

• A) high-beta stocks are consistently overpriced
• B) low-beta stocks are consistently overpriced
• C) nonzero alphas will quickly disappear
• D) growth stocks are better buys than value stocks

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Definitions:

Land-Intensive

Describes production processes or industries that require large amounts of land to produce goods or services.

Chemicals

Substances produced by or used in a chemical process, fundamental components of materials, and products across various industries.

Autos

Short for automobiles, referring to motor vehicles designed for passenger transportation.

Capital-Intensive

A capital-intensive process or business requires a high initial investment in machinery, equipment, or infrastructure relative to labor to produce goods or services.