According to the Efficient Market Hypothesis

question 6

Multiple Choice

According to the efficient market hypothesis

• A)changes in the prices of stocks are predictable.Evidence shows that managed funds typically do better than indexed funds.
• B)changes in the prices of stocks are predictable.Evidence shows that indexed funds typically do better than managed funds.
• C)changes in the prices of stocks are not predictable.Evidence shows that managed funds typically do better than indexed funds.
• D)changes in the prices of stocks are not predictable.Evidence shows that indexed funds typically do better than managed funds.

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Definitions:

Dividing

Dividing is the act of separating or partitioning an object, number, or amount into smaller parts or sections.

Dizygotic Twins

Also known as fraternal twins, these are siblings born from two separate eggs fertilized by two different sperm, resulting in genetically distinct individuals born at the same time.

Fraternal Twins

Twins that develop from two separate eggs fertilized by two different sperm, resulting in siblings that are genetically unique from each other.

Correlation

A statistical measure that describes the extent to which two variables change together, but not necessarily indicating that one causes the other.