Evidence Against Market Efficiency Includes

question 48

Multiple Choice

Evidence against market efficiency includes

• A)failure of technical analysis to outperform the market.
• B)the random walk behavior of stock prices.
• C)the inability of mutual fund managers to consistently beat the market.
• D)the January effect.

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Definitions:

Credit Terms

The payment conditions set by a seller for the buyer, including the period allowed for payment and any cash discount for early payment.

Inventory Returns Estimated

An approximation of the value or volume of goods that will be returned from customers back to the inventory.

Sales Refund Payable

A liability account that holds funds reserved for future refunds to customers for returned goods.

Sales Returns

Goods returned by customers to the seller after the sale, which result in a reduction of revenue previously recognized.