If the Stock Market Is Semistrong Efficient,which of the Following

question 48

Multiple Choice

If the stock market is semistrong efficient,which of the following statements is correct?

• A)All stocks should have the same expected returns; however, they may have different realized returns.
• B)Investors can outperform the market if they have access to information that has not yet been publicly revealed.
• C)In equilibrium, stocks and bonds should have the same expected returns.
• D)All stocks should have the same expected return.

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Definitions:

Random Assignment

The assignment of participants to categories of an independent variable such that each participant has an equal chance of being assigned to each category.

Systematic Observation

An observational method that involves structured, consistent procedures for recording and analyzing phenomena.

Quasi-experimental Research

A research design that attempts to establish a cause-and-effect relationship but does not rely on random assignment.

Observational Research

Research methods involving the systematic and objective observation of naturally occurring behavior or events.