An Investor Discovers That Stock Prices Change Drastically as a Result

question 62

Multiple Choice

An investor discovers that stock prices change drastically as a result of certain events. This finding is a violation of the:

• A) moderate form of the efficient market hypothesis.
• B) semistrong form of the efficient market hypothesis.
• C) strong form of the efficient market hypothesis.
• D) weak form of the efficient market hypothesis.
• E) None of these.

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Definitions:

Debits

An entry recorded on the left side of a double-entry bookkeeping system that increases asset or expense accounts, or decreases liability, equity, or income accounts.

Credits

Credits refer to the accounting entry that either increases a liability or equity account, or decreases an asset or expense account.

Customer Transaction

An operation between a business and its customer involving the sale or purchase of goods or services.

Invoices

Documents issued by a seller to a buyer that outline the products or services provided, quantities, prices, and terms of payment.