The Efficient Market Hypothesis Holds That That Financial Markets Price

question 12

Multiple Choice

The efficient market hypothesis holds that that financial markets price assets at their intrinsic worth,given all available information.Which of the following forms of the efficient market hypothesis defines all available information as information,including security price trends,publicly available information,and insider information?

• A)Weak
• B)Semi-weak
• C)Semi-strong
• D)Strong

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Definitions:

Naturalistic Observation

A research method involving the observation of subjects in their natural environment without any manipulation or interference.

Sociocultural Perspective

An approach in psychology that examines how societal and cultural factors influence behaviors and mental processes.

Sociocultural Approach

The view that social and cultural factors may be just as powerful as evolutionary and physiological factors in affecting behavior and mental processing and that these factors must be understood when interpreting the behavior of others.

Systems Theory

An interdisciplinary study of systems in general, with the aim of elucidating principles that can be applied to all types of systems at all nesting levels in all fields of research.