Which of the Following Is Typically NOT an Argument Used

question 23

Multiple Choice

Which of the following is typically NOT an argument used for keeping the U.S.trade embargo with Cuba intact?

• A)There is not much economic potential from trade given Cuba's small population and low per capita income.
• B)Removal of the embargo will cause much more Cuban immigration to the United States.
• C)If the Cuban economy is weakened just a bit more, the Cuban political-economic system cannot be sustained.
• D)There will be a backlash among countries supplying such commodities as sugar to the United States if the U.S. buys them from Cuba instead.

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Definitions:

Semistrong Form

States that current market prices reflect all publicly available information. Therefore, the only way to gain abnormal returns on a stock is to possess inside information about the company’s stock.

Stock Market Efficiency

The concept that all available information is reflected in stock prices, thus making it impossible to consistently achieve higher returns than the overall market.

Nonconstant Growth Model

A valuation approach for stocks that assumes a company's dividends will grow at different rates in different periods, unlike the constant growth model.

Initial Growth Period

The phase in a business or project's life cycle characterized by a rapid expansion in revenue and customer base, often necessitating significant investment in marketing and capacity.