The Perfect Market Assumption That There Is "No Difference in Opinion

question 52

Multiple Choice

The perfect market assumption that there is "no difference in opinion" among investors means that

• A)everyone has the same information and is in perfect agreement regarding what return should be required for each given level of risk.
• B)no single entity has any market power.
• C)everyone faces the same tax rate and transaction costs, so there is perfect agreement regarding what an after-tax, after-transaction cost return should be for a given level of
• Risk.
• D)the risk and return of all investments is known with certainty.

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Definitions:

Focus Group

A research method involving a group of people who are asked about their perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement, idea, or packaging.

Marketing Research

The systematic gathering, recording, and analysis of data about issues relating to marketing products and services.

Prospective Customers

People or organizations that might buy a product or service but haven't purchased anything so far.

Survey Method

A research technique that involves the collection of data from a pre-defined group of respondents by means of a questionnaire or interview to gather information and insights on various topics.