Which of the Following Is Consistent with the Efficient Market

question 10

Multiple Choice

Which of the following is consistent with the efficient market hypothesis?

• A)So-called value shares outperform growth shares.
• B)Shares that have performed well over the past year continue to perform well for several more months.
• C)A company announces higher than expected sales and earnings.The share price immediately increases by 10%.
• D)A company announces higher than expected sales and earnings.The share price remains unchanged.

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Definitions:

Vygotsky

A Soviet psychologist known for his work on cognitive development, including the concept of the Zone of Proximal Development.

Parenting Style

The psychological construct representing standard strategies that parents use in raising their children.

Permissive

A parenting or leadership style characterized by low demands with high responsiveness, where rules are minimal and children are allowed considerable freedom.

Authority Figures

Individuals recognized by others for having power or control, often in specific social, legal, or familial roles, and capable of influencing behavior.