Which of the Following Is the Best Statement of the Efficient

question 4

Multiple Choice

Which of the following is the best statement of the efficient markets hypothesis?

• A) Competition between investors works to make the net present value (NPV) of all trading opportunities zero.
• B) Investors with information that a share has a positive net present value (NPV) will buy it, while investors with information that a share has a negative net present value (NPV) will sell it.
• C) A share's price is the aggregate of the information of many investors.
• D) Investor's decisions are dependent on complete current information of a firm's cash flows and accurate predictions of future cash flows.

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Definitions:

Transformational Leadership

A leadership style that inspires positive changes in those who follow, often by creating a vision, fostering change and innovation.

Experience of Flow

A state of complete immersion and involvement in an activity, characterized by a loss of self-consciousness, a sense of timelessness, and optimal performance.

Task-Leadership Style

A leadership approach focused on the efficient completion of tasks and the achievement of objectives, often involving clear directions and roles.

Freedom

The state of being free or at liberty rather than in confinement or under physical constraint; the power to act, speak, or think without externally imposed restraints.