Under Statement of Financial Accounting Concepts No

question 3

Multiple Choice

Under Statement of Financial Accounting Concepts No.2, which of the following relates to both relevance and reliability?

• A)Cost-benefit constraint
• B)Predictive value
• C)Verifiability
• D)Representational faithfulness

Understand treatment options for ADHD and their implications.

Recognize the relationship between psychological disorders and violence.

Acknowledge the sociocultural factors influencing the diagnosis and perception of mental disorders.

Understand the impact of psychological disorders on suicide rates and methods.

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Definitions:

Weak-Form

In finance, a hypothesis suggesting that past stock prices and volumes are not predictive of future stock prices.

Weak Form

Assumes that all information contained in past price movements is fully reflected in current market prices. Thus, information about recent trends in a stock’s price is of no use in selecting a stock.

Semistrong Form

States that current market prices reflect all publicly available information. Therefore, the only way to gain abnormal returns on a stock is to possess inside information about the company’s stock.

Stock Market Efficiency

The concept that all available information is reflected in stock prices, thus making it impossible to consistently achieve higher returns than the overall market.