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Portfolios 502: The Efficient Market Theory

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1.
What findings about stocks threw the efficient market theory into question?
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All of the above. All of these have been found to affect stock prices in ways that called efficiency into question.
2.
The faster that information is incorporated into a security's price, _______.
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The more efficient the market. Efficiency depends to a great deal on available information being expressed through a security's price.
3.
Which market index tracks 500 of the largest US company stocks?
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Standard and Poor's. Standard and Poor's tracks 500 of the largest US company stocks.
4.
In an efficient market, only new information about a security can change its price.
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True. According to the theory, prices react to new information.
5.
Index funds attempt to _______ the market.
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Match. Index funds try only to match the market.