If Security Markets Are Efficient, Then

question 22

Multiple Choice

If security markets are efficient, then:

• A)the net present value of all securities should be positive.
• B)the net present value of all securities should be zero.
• C)the net present value of all securities should be negative.
• D)there are no implications on the net present value of securities.

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Definitions:

Accrued Liabilities

Expenses that have been incurred but not yet paid, reflected on a company's balance sheet.