In an Efficient Market, Stocks with Similar Risks Will

question 52

Multiple Choice

In an efficient market, stocks with similar risks will:

• A)have the same market price.
• B)pay similar dividends.
• C)yield the market rate of return.
• D)produce abnormal returns.
• E)have similar rates of return.

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Definitions:

Defamation

A wrongful act of communicating false statements about a person that injure the person's reputation or good name.

Actual Malice

In defamation, either a person's knowledge that his or her statement or published material is false or the person's reckless disregard for whether it is false.

Nominal Damages

A small sum awarded to a plaintiff in a lawsuit when a legal wrong has occurred, but no actual monetary loss was sustained or proven.

Tort

A tort is a civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act.