A Straight Line Falls When Moving Rightward Along It

question 165

Multiple Choice

A straight line falls when moving rightward along it.Hence the slope of the line is

• A) positive.
• B) negative.
• C) undefined.
• D) zero because it is a straight line.
• E) perhaps positive, negative, or zero, but without more information it is impossible to determine.

Understand the concept of market efficiency in varying forms (weak, semistrong, and strong).

Understand the impact of transaction costs on earning excess returns from inside trades.

Grasp the significance of public availability of insider trading information and regulatory disclosure requirements.

Recognize the limitations of earning excess returns through public inside trades.

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Definitions:

Undue Influence

An improper or wrongful pressure exerted on a person, resulting in the person acting against their free will or in a manner not reflective of their intent.

Misrepresentation

A false statement of fact made by one party to another, which has the effect of inducing that party into a contract.

Rejection

The refusal to accept an offer or proposal, in the context of contracts, it is the refusal to agree to the terms.

Valid

A term applied to a contract that includes all four elements of a contract: agreement (offer and acceptance), consideration, contractual capacity, and legal object.