Excessive Volatility Refers to the Fact That

question 85

Multiple Choice

Excessive volatility refers to the fact that

• A)stock returns display mean reversion.
• B)stock prices can be slow to react to new information.
• C)stock price tend to rise in the month of January.
• D)stock prices fluctuate more than is justified by dividend fluctuations.

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Definitions:

Entrepreneurs

Individuals who initiate, manage, and assume the risks of starting and operating a new business venture.

Setbacks

Unforeseen events or challenges that slow progress or cause plans to be revised.

Equity Financing

Raising capital through the sale of shares in a company, thus providing investors with part ownership in exchange for funds.

Entrepreneur

An individual who identifies a business opportunity and organizes, operates, and assumes the risk for a business venture, with the aim of making a profit.