Your Broker Suggests That You Can Make Consistent,excess Profits by Purchasing

question 31

Multiple Choice

Your broker suggests that you can make consistent,excess profits by purchasing stocks on the 20^th of the month and selling them on the last day of the month.If this is true,then:

• A) the market is only semi strong-form efficient.
• B) the market violates even weak-form efficiency.
• C) insiders will be the only investors to profit.
• D) prices follow a random walk.

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Definitions:

Marginal Cost

The increase or decrease in the total cost that arises from producing one additional unit of a product or service.

Breakeven Price

The sales amount at which a business neither makes a profit nor incurs a loss, covering all its costs.

Generic Drug

A pharmaceutical drug that contains the same chemical substance as a drug that was originally protected by chemical patents.

Duloxetine

A medication primarily used to treat major depressive disorder, generalized anxiety disorder, fibromyalgia, and neuropathic pain.