Which of the Following Is an Assumption of the CMT

question 25

Multiple Choice

Which of the following is an assumption of the CMT?

• A) Single investors can affect the market by their buying and selling decisions.
• B) There is no inflation.
• C) Investors prefer capital gains over dividends.
• D) Different investors have different probability distributions for assets.

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Definitions:

Body Temperature

A measure of the body's ability to generate and get rid of heat, considered an important aspect of homeostasis and indicative of health status.

Autonomic Nervous System

The autonomic nervous system is a part of the peripheral nervous system that controls involuntary bodily functions, such as heart rate, digestion, and respiratory rate.

Involuntary Muscles

Muscles that operate without conscious control, such as those in the heart and digestive system.

Somatic

Relating to or affecting the body, especially as distinguished from the mind or spirit.