Which of the Following Is Least Likely to Be a Factor

question 102

Multiple Choice

Which of the following is least likely to be a factor in developing a sales forecast?

• A) Geographic area in which the product is sold
• B) Last year's sales
• C) Entire product line
• D) Number of salespeople employed by the firm's major competitors
• E) Expected level of marketing effort

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Definitions:

Random Walk

A theory suggesting that stock market prices follow a random path, making it impossible to predict future price directions based on past information.

Efficient Markets Hypothesis

A financial theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the overall market.

Financial Risk

The possibility of losing money on an investment or business venture due to various factors including market fluctuations, interest rate changes, and credit risk.

Efficient Market Theory

A hypothesis stating that financial markets fully incorporate all available information into asset prices at all times.