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:

Account Balance

The amount of money in a financial repository at any given moment, which can include bank accounts or credit accounts.

NSF Check

A check that cannot be processed due to insufficient funds in the account it's drawn from, often resulting in a fee.

Bank Statement

A summary issued by a bank detailing all transactions in an account over a specified period.

Outstanding Checks

Checks that have been written and recorded in the check issuer's accounting system but have not yet been cashed or cleared by the bank.