The Efficient Market Hypothesis Has Several Forms

question 79

Multiple Choice

The efficient market hypothesis has several forms.The weak form states that:

• A) past price data is unrelated to future prices.
• B) prices reflect all public information.
• C) all information both public and private is immediately reflected in stock prices.
• D) market efficiency is weakest during an economic downturn.

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Definitions:

Ending merchandise inventory

The final value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Inventory costing method

An accounting methodology used to value inventory and determine the cost of goods sold, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).

Ending inventory

The value of goods available for sale at the end of an accounting period, a crucial component for calculating the cost of goods sold (COGS).

Earliest costs

This term is not standard in financial terminology; it may refer to historical costs, which are the original monetary value of an economic item.