The Price of Amazon

question 24

Multiple Choice

The price of Amazon.com stock was very high in the 1990s although the company never earned an economic profit.This demonstrates that:

• A)investors' expectations of future profits alone influence the stock prices.
• B)the performance of a firm has no bearing on stock prices.
• C)stock markets are highly inefficient because investors vary in their risk appetites.
• D)speculation based on wishful thinking by investors have a bearing on the stock prices.
• E)investor expectations are generally rational.

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Definitions:

Nephron

Functional unit of the kidney, consisting of the renal corpuscle, the proximal convoluted tubule, the loop of Henle, and the distal convoluted tubule.

Interstitial Fluid

The fluid that surrounds the cells in tissues, providing nutrients and removing waste.

Plasma

Fluid portion of blood.

Protein

Macromolecule consisting of long sequences of amino acids linked together by peptide bonds.