If Financial Markets Were Not Efficient, It Would Be More

question 91

Multiple Choice

If financial markets were not efficient, it would be more likely for firms to:

• A) finance investments in a zero-NPV transaction.
• B) finance investments in a positive NPV transaction.
• C) totally avoid the need for external financing.
• D)finance investments in a negative NPV transaction.

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Definitions:

Appadurai's Landscapes

Refers to Arjun Appadurai's conceptual framework on the fluid, dynamic global cultural flows categorized into five dimensions: ethnoscapes, technoscapes, financescapes, mediascapes, and ideoscapes.

Nation-States

Politically sovereign entities characterized by a defined territory, permanent population, a government, and the capacity to enter into relations with other states.

Disjunctures

Points of disruption or disconnection in societal, cultural, or technological systems, where expected flows or relationships are broken.

George Ritzer

George Ritzer is an American sociologist known for his work on consumerism, globalization, and the theory of McDonaldization, which describes the increasing rationalization of society.