In Order to Test the Weak Form of the Efficient-Market

question 15

Multiple Choice

In order to test the weak form of the efficient-market hypothesis,researchers have used the following methods EXCEPT:

• A)estimation of the serial correlation (autocorrelation)for securities and markets.
• B)measurement of the profitability of trading rules used by technical analysts.
• C)measurement of how rapidly security prices adjust to different news items.
• D)all of the options are methods

Grasp the principles of inventory valuation methods and their effects.

Interpret basic financial statements and their components for business analysis.

Understand the concept of the generalized other and its significance in societal roles and expectations.

Grasp Charles Cooley's theory of the looking-glass self and its impact on self-perception and identity.

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.

Prepaid Expenses

Assets representing payments made in advance for goods or services to be received in the future.

Total Current Assets

The sum of all assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Receivables Turnover Ratio

A financial metric indicating how efficiently a company collects its receivables, calculated by dividing net credit sales by the average accounts receivable.