If an Investor Believes That the Stock Market Is Efficient

question 4

Multiple Choice

If an investor believes that the stock market is efficient at only the weak level, which of the following activities would he consider to be a waste of time and effort?

• A)plotting the historical prices of a stock to look for a trend that will suggest when it is a good time to buy or sell that stock.
• B)studying a firm's financial statements in an attempt to forecast the future cash flows of the firm.
• C)analyzing current information about a firm as it is made public.
• D)reading a column in the Wall Street Journal that he believes often hints at insider information.

Describe adaptations in skeletal muscle in response to different physical conditions or demands.

Understand the principles governing the formation of contracts, including the offer and acceptance rules.

Distinguish between different types of rules such as the mirror image rule, mailbox rule, and others relevant to contract law.

Comprehend the doctrine of promissory estoppel and its requirements.

---

Definitions:

Noncumulative

Pertaining to dividends on preferred stock where missed dividends are not required to be paid back to shareholders in future payments.

Preferred Stockholders

Individuals or entities that own shares of preferred stock in a company, granting them certain privileges over common stockholders, such as fixed dividends and priority in asset distribution upon liquidation.

Dividend

A portion of a company's earnings distributed to its shareholders, usually in the form of cash or additional stock.

Partnership Accounting

The process of managing and recording the financial activities, transactions, and interests of partners within a business partnership.