Which of the Following Is True of the Efficient Markets

question 14

Multiple Choice

Which of the following is true of the efficient markets hypothesis?

• A)The efficient markets hypothesis summarizes the idea of efficient markets as markets in which prices fully reflect available information.
• B)The efficient markets hypothesis summarizes the idea of efficient markets as markets in which both systematic and unsystematic risk can be completely eliminated.
• C)The efficient markets hypothesis only applies to large multinational corporations which have both systematic and unsystematic risk.
• D)The efficient markets hypothesis states that the expected return of a financial asset is a linear function of various macro-economic factors.

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