Help
Course Catalog > Portfolios > 500
Portfolios 502: The Efficient Market Theory

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Small-cap and large-cap stocks are examples of sub-asset categories.
Choose wisely. There is only one correct answer.
True. They are sub-categories of stocks, and they are described by their capitalizations.
2.
What findings about stocks threw the efficient market theory into question?
Choose wisely. There is only one correct answer.
All of the above. All of these have been found to affect stock prices in ways that called efficiency into question.
3.
Index funds attempt to _______ the market.
Choose wisely. There is only one correct answer.
Match. Index funds try only to match the market.
4.
All possible information about a security is reflected in its price when a market's efficiency is _______.
Choose wisely. There is only one correct answer.
Strong. The stronger the efficiency, the more likely that a security's price will reflect current information.
5.
In an efficient market, _______.
Choose wisely. There is only one correct answer.
All of the above. These are all essential if a market is to be efficient.