When Investors Are Not Capable of Making Superior Investment Decisions

question 106

Multiple Choice

When investors are not capable of making superior investment decisions on a continual basis based on past prices or public or private information, the market is said to be:

• A) weak-form efficient.
• B) semistrong-form efficient.
• C) strong-form efficient.
• D)fundamentally efficient.

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Definitions:

Warranty Period

The duration during which a manufacturer or vendor is obligated to repair or replace a product if it fails to meet specified criteria.

Journal Entry

A record in accounting that shows the financial transactions affecting the accounts of a business.

Average Cost

Average Cost is a cost accounting method that calculates the cost of goods sold and ending inventory value by averaging the total cost of goods available for sale over the total units.

Subscription Sales

Income generated from selling access to a product or service over a period of time rather than as a single purchase.