Which of the Following Statements Is FALSE

question 90

Multiple Choice

Which of the following statements is FALSE?

• A)Stock markets aggregate the information and views of many different investors.
• B)Only in the relatively rare case in which we have some superior information that other investors lack regarding the firm's cash flows and cost of capital would it make sense to second-guess the market stock price.
• C)In most situations,a valuation model is best applied to tell us something about the value of the firm's stock.
• D)The efficient market hypothesis implies that securities will be fairly priced,based on their future cash flows,given all information that is available to investors.

---

Definitions:

Temporal Lobe

A region of the brain responsible for processing auditory information and is also involved in memory and emotion.

Occipital Lobe

The region of the cerebral cortex located at the back of the brain, responsible for processing visual information.

Cranial Nerve

One of twelve nerves that emerge directly from the brain, not the spinal cord, and supply sensory and motor functions to the head and neck.

Orange Flavor

A taste sensation derived from the essential oils, notably limonene, found in the peel and pulp of oranges.