In an Efficient Capital Market ____

question 56

Multiple Choice

In an efficient capital market ____.

• A) required returns equal expected returns
• B) investors will have holding period returns equal to zero
• C) purchase of any security yields zero profit
• D) purchasing stocks is no better than gambling

Compare and contrast different methods of distributing excess cash to shareholders.

Analyze the impact of tax laws on corporate dividend and repurchase decisions.

Understand the concept and roles of creative selling in promotional strategies.

Grasp the purpose, methods, and effects of missionary selling and how it promotes goodwill and provides assistance.

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Definitions:

Values

Core beliefs or standards that guide behavior and decision-making for individuals or groups.

Ethnic Enclave

A geographic area with a high concentration of people from the same ethnic group, creating a community with cultural distinctiveness.

Ethnic Group

A community of people who share a common cultural background, ancestry, language, or social experience.

Community Businesses

Small or local businesses that serve and are supported by the local community.