The efficient markets hypothesis predicts that an investor
A) will not be able consistently to earn above-normal profits from buying or selling stocks.
B) will be able consistently to earn above-normal profits from buying or selling stocks so long as he or she makes use of rational expectations.
C) will be able consistently to earn above-normal profits from buying or selling stocks so long as he makes use of adaptive expectations.
D) will be able consistently to earn above-normal profits so long as stock prices in general are rising.
A
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The marginal productivity principle does not
A. assign higher prices to scarcer resources. B. create incentives for firms to discriminate.. C. guide firms to use society’s resources efficiently. D. distribute incomes unequally among society.
To be accepted as money, an item must perform all of the following functions EXCEPT
A) be a medium of exchange. B) serve as a store of value. C) be easily reproduced. D) serve as a standard of deferred payment.
A tax system in which the average and marginal tax rates are the same for every level of taxable income and every change in income is an example of
A) regressive taxation. B) proportional taxation. C) progressive taxation. D) premium taxation.
Agreeing to take a drug test offered by a potential employer is a method of:
A. signaling. B. screening. C. statistical discrimination. D. building a reputation.