In an Efficient Market,a Simple Buy-And-Hold Policy Is

question 50

Multiple Choice

In an efficient market,a simple buy-and-hold policy is:

• A)the best strategy because trying to beat the market is almost impossible.
• B)the best strategy because evidence suggests that even private information cannot yield abnormal returns.
• C)not the best strategy because,as share prices change over time,portfolios warrant re-balancing.
• D)not the best strategy because,in an efficient market,some investors must believe that the market is inefficient.

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Definitions:

Customer Interaction

The points of engagement between a business and its customers, which can influence customer satisfaction, loyalty, and overall experience.

Firm's Costs

The expenses incurred by a company in producing its products or providing its services, including production, operational, and overhead costs.

Customer Wait Time

The duration a customer must wait before receiving a product or service, affecting overall satisfaction and perception of the business.

Customer Cycle Time

The total time taken from when a customer requests a service or product to when they receive it.