Which One of the Following Is NOT an Example of Market

question 49

Multiple Choice

Which one of the following is NOT an example of market efficiency?

• A)Stock price changes after earning announcements.
• B)Stock price decreases every third day by 0.5% from the opening price.
• C)Stock price has a beta of 1.
• D)Stock price decreases when the market goes up.

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Definitions:

Equity Firm

A company that invests its clients' funds in businesses, typically acquiring significant control or full ownership.

Borrowing

The process of obtaining funds from lenders with a promise to repay, generally with interest, at a future date.

Repurchase

The act of buying back shares of its own stock by a company, reducing the number of outstanding shares in the market.

Equity Financed

The practice of raising capital for a business through the sale of shares in the company.