If a Market Is Efficient, Then the Difference Between the Market

question 212

Multiple Choice

If a market is efficient, then the difference between the market value of an investment and its cost
is:

• A) Zero.
• B) Positive and greater than 1.
• C) Equal to the risk premium.
• D) Equal to the net present value of the cash inflows.
• E) Equal to the risk-free rate of return.

Understand the causes and effects of organizational inertia and how perceived threats can both motivate and hinder change.

Recognize the relationship between environmental dynamics and the necessity for organizational change, including the degree of change needed for effectiveness.

Identify the reasons for the failure of organizational change programs, emphasizing the importance of proper diagnosis, change management, and cultural adjustments.

Relate the concepts of unfreezing, change, and refreezing in the context of organizational development and change processes.

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Definitions:

Small Coalition

A minimal grouping of individuals or entities that unites to pursue a specific goal or interest.

Groupthink

A psychological phenomenon where the desire for harmony or conformity in a group leads to irrational or dysfunctional decision-making outcomes.

Critical Evaluator

A role in decision-making that involves rigorously assessing information, arguments, and outcomes.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.