A Common Factor That All Managers Face in Today's World

question 91

Multiple Choice

A common factor that all managers face in today's world is the ________.

• A)changing nature of work
• B)lagging development of technology
• C)demand to move to a production based economy
• D)boredom of employees

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Definitions:

Semistrong-Form

A theory related to the Efficient Market Hypothesis that asserts all public information is already reflected in stock prices, along with historical information.

Weak-Form

In finance, a hypothesis suggesting that past stock prices and volumes are not predictive of future stock prices.

Weak Form

Assumes that all information contained in past price movements is fully reflected in current market prices. Thus, information about recent trends in a stock’s price is of no use in selecting a stock.

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.