If It Proves Possible to Make Abnormal Profits Based on Information

question 127

Multiple Choice

If it proves possible to make abnormal profits based on information regarding past stock prices,then the market:

• A) is weak-form efficient.
• B) is not weak-form efficient.
• C) is semistrong-form efficient.
• D) is strong-form efficient.

Apply present value concepts to calculate the worth of bonds, including zero coupon and Treasury bonds.

Calculate and evaluate the net present value (NPV) and internal rate of return (IRR) of investments.

Understand the impact of taxes, depreciation methods, and salvage values on investment decisions.

Apply financial principles to retirement planning, including saving strategies and income requirements.

---

Definitions:

Functional Structures

An organizational design that groups employees by their similar skills, resource uses, and expertise to perform work efficiently.

Cost Containment

Strategies or measures implemented to control, reduce, or maintain expenses within a given budget.

Divisional Structures

An organizational structure that groups departments based on common products, services, markets, or geographical locations.

Few Products

A situation where a business offers a limited selection of goods or services.