36. Over the last three years, a portfolio manager investing in large cap stocks had an average return of 25% when the small cap benchmark he selected returned 19.5%. Is the performance consistent with efficient market hypothesis? a. No, it is not. It is a violation of weak form EMH. b. No, it is not. It is a violation of semi-strong form EMH. c. No, it is not. It is a violation of strong form EMH. d. No, it is not. It is a violation of all forms of EMH. e. Yes, it could be. The manager selected an inappropriate benchmark.
36. Over the last three years, a portfolio manager investing in large cap stocks had an average return of 25% when the small cap benchmark he selected returned 19.5%. Is the performance consistent with efficient market hypothesis? a. No, it is not. It is a violation of weak form EMH. b. No, it is not. It is a violation of semi-strong form EMH. c. No, it is not. It is a violation of strong form EMH. d. No, it is not. It is a violation of all forms of EMH. e. Yes, it could be. The manager selected an inappropriate benchmark.
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter9: Counting And Probability
Section9.4: Expected Value
Problem 2E: If you played the game in Exercise 1 many times, then you would expect your average payoff per game...
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36. Over the last three years, a portfolio manager investing in large cap stocks had an average return of 25% when the small cap benchmark he selected returned 19.5%. Is the performance consistent with efficient market hypothesis?
a. No, it is not. It is a violation of weak form EMH.
b. No, it is not. It is a violation of semi-strong form EMH.
c. No, it is not. It is a violation of strong form EMH.
d. No, it is not. It is a violation of all forms of EMH.
e. Yes, it could be. The manager selected an inappropriate benchmark.
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