According to the Strong Form of Efficient Market Hypothesis

question 27

Multiple Choice

According to the strong form of efficient market hypothesis:

• A)Private information is of no help in earning abnormally high returns.
• B)Using past price and volume information one can earn abnormally high returns from stocks.
• C)Using insider information one can earn abnormally high returns from stocks.
• D)Financial statement analysis can be used to earn abnormally high returns from stocks.
• E)Equity Analysts are always correct in predicting the best stocks.

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, thus having a financial interest in the company's performance.

Legal Acts

Actions that are authorized, performed, or recognized by law or legislation and have legal effect or consequences.

Immoral

Actions or behavior that are considered to be wrong or unethical according to societal norms.

Intuitionism

A philosophical theory in ethics and mathematics emphasizing intuition as a foundational or inherent source of knowledge.