An Ownership Interest Does Not Automatically Confer a Right to Act

question 97

True/False

An ownership interest does not automatically confer a right to act for, or to share in, the management of a company.

---

Definitions:

Risk Premium

The additional return expected by an investor for taking on a higher level of risk compared to a risk-free investment.

Treasury Bills

Short-term government securities issued at a discount from the par value and pay no interest before maturing.

Weak Form Efficiency

Refers to a theory in financial economics that suggests all past market prices and data are fully reflected in current stock prices, implying that past price movements cannot predict future stock prices accurately.