Financial Managers Must Be Cognizant of Market Efficiency Because

question 46

Multiple Choice

Financial managers must be cognizant of market efficiency because:

• A) manipulating earnings by accounting changes does not fool the market.
• B) timing security sales is futile because without private information the current price reflects all known information.
• C) there is limited price pressure from any large sale of stock depressing prices only momentarily before recovering to prior levels.
• D) All of these.
• E) None of these.

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Definitions:

Hardships

Difficult or unpleasant conditions or experiences that are often challenging to overcome.

Lesbians with Children

Female same-sex couples or homosexual women who are raising children together, either biologically from one partner, through adoption, or surrogacy.

Adolescent Motherhood

The state or experience of being a mother during the teenage years, which can entail unique social, economic, and health challenges.

Public Assistance

Governmental support provided to individuals in need, often in the form of financial aid, food stamps, or housing subsidies.