____ Are Future Costs That Differ Across Alternatives

question 31

Multiple Choice

____ are future costs that differ across alternatives.

• A)Relevant costs
• B)Irrelevant costs
• C)Sunk costs
• D)Past costs

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Definitions:

Market Efficiency

A market theory that suggests that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the overall market.

Semistrong-Form Market Efficiency

A theory stating that all publicly available information is already reflected in stock prices, thus making it impossible to achieve consistently higher returns.

Index Fund

A type of mutual fund or exchange-traded fund (ETF) designed to follow the components of a market index, such as the S&P 500, to provide broad market exposure with low operating expenses.

Serial Correlation

The association between successive observations of the same variable, such as stock returns, over time.