According to the Efficient Markets Hypothesis, Stock Prices

question 185

Multiple Choice

According to the efficient markets hypothesis, stock prices:

• A) reflect all publicly available information about the stock market.
• B) reflect all private company information that is known only to company insiders.
• C) contain both public and private information that is helpful for some investors to outperform other investors.
• D) contain no useful information.

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Definitions:

Variable Overhead

Costs that vary with the level of production output, such as utilities and commissions.

Materials Price Variance

The difference between the actual cost of materials and the standard cost, multiplied by the actual quantity of materials used.

Variable Manufacturing Overhead

This refers to the manufacturing overhead costs that vary with the level of production, such as utilities or indirect materials.

Materials Price Variance

The variance between the standard cost and the actual expense of materials, factored by the number of materials acquired.