According to the Efficient-Market Hypothesis, Stock Price Changes Reflect

question 76

Multiple Choice

According to the efficient-market hypothesis, stock price changes reflect , but according to Keynes, stock price changes often reflect .

• A)the inventory accelerator; changes in Tobin's q
• B)changes in the real cost of capital; financing constraints
• C)changes in the underlying economic fundamentals; irrational waves of optimism or pessimism
• D)reductions in investment tax credits; the use of historical cost rather than replacement cost in computing depreciation costs

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