The Figure Given Below Shows the Demand [D and D']

question 99

Multiple Choice

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-Why is it unlikely for even a very successful investor to continuously outperform the market?

• A)Different investors have different risk appetites.
• B)Individual investors have independent strategies.
• C)The stock market is not subject to sufficient government regulations.
• D)Investors often mimic the strategies of the successful investor.
• E)The market is always inefficient.

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Definitions:

Terms 2/10 N/30

A common payment term in business indicating that a buyer can take a 2% discount on the invoice price if payment is made within 10 days; otherwise, the full invoice price is due in 30 days.

Merchandise Returns

Goods returned by the buyer to the seller, often due to defects, dissatisfaction, or other reasons, leading to a reversal of the sale.

Cash Realizable Value

The net amount of cash expected to be received from receivables, after adjusting for any allowances for doubtful accounts.

Receivables

Money owed to a company by its customers or other parties, typically from sales on credit, expected to be collected in the future.