Which of the Following Is a Significant Implication of Stock

question 19

Multiple Choice

Which of the following is a significant implication of stock market efficiency?

• A) The market offers managers an informed and objective critique of their performance.
• B) Timing of a new share issue is critical to its success.
• C) A search for undervalued businesses will provide lucrative take-over targets.
• D) Businesses must take seriously the setting of the level of risk and appropriate return on an investment.
• E) Altering the type of security may make the initial offering more appealing to investors.

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Definitions:

New-product Development Process

The series of steps from idea generation to market launch that companies follow to create and introduce a new product.

Business Opportunities

Opportunities in the market where products, services, or business practices can be introduced or improved for potential profit and growth.

Screeningevaluation

An initial assessment process to determine the viability, risk, or worthiness of a project or candidate.

New-product Strategy Development

A process involving market research, product development, and marketing strategies to launch a new product successfully.