Some Investment Analysts Believe That the Market Processes New Information

question 20

Multiple Choice

Some investment analysts believe that the market processes new information so well and so quickly that securities trade very close to their intrinsic values at all times. These analysts are said to be advocates of

• A) the efficient markets hypothesis.
• B) the prevailing price hypothesis.
• C) sector analysis.
• D) fundamental analysis.

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Definitions:

Expatriate

An individual who lives outside their native country, often for work reasons.

Ethnocentric

A viewpoint that one's own ethnic group or culture is superior to others, often leading to judgment of other cultures based solely on the values and standards of one's own culture.

International Operations

Business activities that a company conducts outside its home country, involving global management of production, logistics, marketing, and human resources.

Polychronic

Describes a cultural approach to time management that values multitasking and the handling of multiple activities simultaneously.