In: Economics
1. Which statement is consistent with the efficient markets
hypothesis?
A. No one can earn a return in the stock
market.
B. No mutual funds can outperform stock
composite indexes at any time.
C. The majority of stock mutual funds
cannot outperform stock composite indexes.
D. Technical analysis is the only way to
beat the market over time.
2. Which statement is TRUE?
A. One can earn higher returns by
investing in funds with high loading costs.
B. Passive investments underperform active
investments.
C. In the long run, stock returns are
higher than bond returns.
D. The efficient markets hypothesis only
holds in the short run.
3. Financial returns on houses are _______ over long periods of time because part of the return on housing is from ________.