Showing the Relationships Between Two or More Financial Variable And/or

question 26

True/False

Showing the relationships between two or more financial variable and/or time, financial ratios are useful means of summarizing large amounts of financial data for comparative purposes.

---

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.