Given the Efficiency of Our Financial Markets

question 112

Multiple Choice

Given the efficiency of our financial markets,

• A)There is no justification for technical analysts
• B)There is no justification for fundamental analysts
• C)Both technical and fundamental analysts serve a useful function
• D)All investors should index their portfolio

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Definitions:

Fiscal Year

A financial year used by governments and businesses for accounting purposes, which may or may not align with the calendar year.

Convertible Bonds

Debt securities issued by a corporation that can be converted into a predetermined number of the company's equity shares.

Old Age Security Clawback

A repayment obligation that kicks in when the annual income of an Old Age Security (OAS) recipient exceeds a certain threshold, reducing the OAS benefit.

Net Income

The sum of income remaining after subtracting all costs and taxes from the total revenue.