George Is Trying to Forecast the Future Price of IBM's

question 79

Multiple Choice

George is trying to forecast the future price of IBM's common stock. To do so he makes use only of past prices of IBM stock. George

• A)has adaptive expectations.
• B)has rational expectations.
• C)is likely to rapidly adjust his forecast to news affecting the future profitability of IBM.
• D)is likely to make forecasts that reflect closely IBM stock's fundamental value.

---

Definitions:

State-of-the-Art Equipment

The most advanced and modern tools or machinery available in a field or industry.

Factoring Accounts Receivable

The financial practice of selling a business's invoices to a third party to secure immediate cash flow.

SBA Loans

Loans backed by the Small Business Administration designed to help small businesses get started, expand, or recover.

7(a) Program

A U.S. Small Business Administration (SBA) loan program designed to provide financial assistance to small businesses.