What Phrase Actually Measures the Positive Result of Market Inefficiency

question 34

Multiple Choice

What phrase actually measures the positive result of market inefficiency?

• A) CAMP
• B) beta
• C) volatility
• D) alpha

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Definitions:

Unlimited Number Of Securities

Pertains to a situation where a company is authorized to issue as many shares of stock as it desires, with no set maximum limit defined in its charter.

Profits

Profits represent the financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Penalty

A penalty applied for violating a regulation, agreement, or statute.

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or other entity, providing an overview of a financial situation over a specified period.