The Strong Form of the Efficient Market Hypothesis Contends That

question 82

Multiple Choice

The strong form of the efficient market hypothesis contends that

• A)a select few institutional investors can earn abnormal profits.
• B)abnormal profits are randomly distributed.
• C)no one can consistently earn a profit.
• D)no one can consistently earn abnormal profits.

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Definitions:

Hourly Wage

A rate of pay given to employees based on the number of hours worked.

Parking

The act of stopping and disengaging a vehicle and leaving it unoccupied, typically in a designated area or space intended for vehicles.

Accounting Profits

The net income for a company calculated by subtracting total expenses from total revenues, according to standard accounting practices.

Cost Per Unit

The amount of financial expense associated with producing a single unit of a product or service.