Which of the Following Is an Assumption of the CMT

question 25

Multiple Choice

Which of the following is an assumption of the CMT?

• A) Single investors can affect the market by their buying and selling decisions.
• B) There is no inflation.
• C) Investors prefer capital gains over dividends.
• D) Different investors have different probability distributions for assets.

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Definitions:

Positive Message

A positive message conveys optimism, encouragement, or good news, aiming to uplift the receiver's spirits or provide affirmative feedback.

Insurance Benefits

Financial protection or compensation provided by insurance policies against losses or damages.

Financial Crisis

An economic condition marked by the sudden and severe downturn in financial markets, assets, or institutions, often resulting in widespread economic hardship.

Supporting Evidence

Material or information provided to substantiate claims, arguments, or hypotheses, strengthening the case being made.