Which of the Following Is NOT an Implication of the Efficient

question 31

Multiple Choice

Which of the following is NOT an implication of the efficient market hypothesis for corporate financial officers?

• A)They should ignore dramatic changes in their company's stock price.
• B)There is no point in timing the issue of new securities.
• C)It does not make sense to "play" interest rates by rolling over short-term debt until long-term rates fall.
• D)There is no point in timing stock repurchases in an efficient market.

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Definitions:

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires, which is critical for personal development.

Hiring Practices

Refers to the methods and procedures used by organizations to recruit and hire new employees.

Feeler

An individual who relies more on intuition and emotions when making decisions or interacting with others.

Thinking Type

Describes an individual's preferred method or style of thinking, often categorized by cognitive functions in psychological typologies.