Which of the Following Statements Is INCORRECT

question 122

Multiple Choice

Which of the following statements is INCORRECT?

• A)Different companies tailor the EVA® computations to meet their own needs.
• B)It can be argued that the stock market is inefficient because stock prices cannot reflect all publicly accessible data.
• C)Market efficiency has implications for management action and for investor decisions.
• D)Investors seek to manage risk, diversify investments, and minimize transaction costs.

---

Definitions:

Trade

The act of buying, selling, or exchanging goods and services between people, firms, or countries.

Consumption Combination

The mix of goods and services that a consumer chooses to consume at a given time based on their preferences and budget.

Absolute Advantage

The ability of a country or entity to produce a good or service more efficiently than another country or entity.

Comparative Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower opportunity cost than competitors.