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.

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Definitions:

Soroka v.Dayton Hudson Corporation

A legal case that highlighted issues related to the use of psychological testing in employment decisions.

Case Law

Law established by previous court decisions and based on interpretations of statutes, regulations, and constitutions.

Psychological Test

An objective, standardized measure of behavior.

Job Application

A formal request for employment, typically consisting of a resume and cover letter, submitted to an employer.