Which One of the Following Statements Is True

question 76

Multiple Choice

Which one of the following statements is true?

• A) Market crashes tend to be accompanied by low market volume.
• B) The Asian market crash was followed by a quick recovery.
• C) The market crash of 1929 and the crash of 1987 are very similar in both the percentage decline in market value and in the ensuing market recovery.
• D) Market crashes tend to follow market bubbles.
• E) Market bubbles and crashes prove that financial markets are inefficient.

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Definitions:

Simple Rate

The percentage increase or interest rate in a financial calculation, often straightforward or uncomplicated.

Net Present Value

A method used in capital budgeting to analyze the profitability of an investment, calculating the difference between present values of cash inflows and outflows.

Proposed Project

A planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

Net Present Value

The divergence in current value of cash inflows versus outflows over an established time frame.