n NISM Certifications
XXI NISM Series XXI-A
Medium

The Efficient Market Hypothesis (EMH) suggests that:

Practice question from NISM XXI A for PMS - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Stock prices fully reflect all available information

    Correct answer

  2. B

    It is possible to consistently outperform the market by exploiting public information

  3. C

    Stock prices are entirely unpredictable

  4. D

    Investors can generate abnormal returns through technical analysis

Why this is the answer

EMH states that markets are efficient, and prices always incorporate all known information.

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