If returns on share prices are greater in certain months such as January, this would refute theories that suggest markets are ____________.

Question

Quizplus · Accepted Answer

Theories that suggest markets are efficient propose that all publicly available information is already reflected in stock prices. If returns on share prices are greater in certain months, such as January, this would suggest that the market is not fully efficient, as there may be some underlying reasons causing this pattern that have not yet been fully incorporated into stock prices. Therefore, the correct answer is D, efficient.

If Returns on Share Prices Are Greater in Certain Months