True about efficient market hypothesis

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1. The balance sheets of commercial banks and mutual funds look strikingly similar except for which of the following?

A. Commercial banks distinguish between depositors and shareholders.

B. Mutual banks distinguish between depositors and shareholders.

C. Commercial banks distinguish between assets and libilities, but mutual funds do not.

D. Mutual funds distinguish between assets and liabilities, but commercial banks do not.

2. Which of the following is true about the Efficient Market Hypothesis, EMH?

There is ample evidence to confirm the strong-form EMH.

The semi-strong form EMH contains the weak-form EMH.

It is well-established (in academic research) that you can generate additional returns using price and volume pattern data.

Inside information is reflected in prices under the semi-strong form EMH.

Reference no: EM132047852

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