Which of the following statements about the Efficient Market Hypothesis (EMH) is incorrect? Group of answer choices a)If the market is strong-form efficient, investors can not earn abnormal returns using inside information. b) If the investment in small firms earns a positive abnormal return, the stock market is not semi-strong form efficient. c) If a market is efficient, investors tend to follow a passive investment strategy. d) If the future stock price change depends on its history, the market is not weak-form efficient. e) If a market is weak-form efficient, fundamental analysis can not earn a positive abnormal return.
Which of the following statements about the Efficient Market Hypothesis (EMH) is incorrect? Group of answer choices a)If the market is strong-form efficient, investors can not earn abnormal returns using inside information. b) If the investment in small firms earns a positive abnormal return, the stock market is not semi-strong form efficient. c) If a market is efficient, investors tend to follow a passive investment strategy. d) If the future stock price change depends on its history, the market is not weak-form efficient. e) If a market is weak-form efficient, fundamental analysis can not earn a positive abnormal return.
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter25: Portfolio Theory And Asset Pricing Models
Section: Chapter Questions
Problem 8MC: You have been hired at the investment firm of Bowers & Noon. One of its clients doesn’t understand...
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Which of the following statements about the
Group of answer choices
a)If the market is strong-form efficient, investors can not earn abnormal returns using inside information.
b) If the investment in small firms earns a positive abnormal return, the stock market is not semi-strong form efficient.
c) If a market is efficient, investors tend to follow a passive investment strategy.
d) If the future stock price change depends on its history, the market is not weak-form efficient.
e) If a market is weak-form efficient, fundamental analysis can not earn a positive abnormal return.
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