Which of the Following Is Incorrect

question 44

Multiple Choice

Which of the following is incorrect?

• A)Most firms would want to sell additional shares of common stock if they feel their stock is undervalued.
• B)Most firms would not want to repurchase shares of common stock if they feel their stock is overvalued.
• C)It is important for financial managers to understand market efficiency because it helps them understand how their stock prices will react to different types of decisions and news announcements.
• D)none of these choices are complete.

---

Definitions:

Probability

A branch of mathematics concerned with the analysis of random phenomena, describing the likelihood of occurrences through numerical values between 0 and 1.

Random

Lacking any definite plan, purpose, or pattern, often used in the context of selection or occurrence.

First Serves

In tennis, the initial serve attempt in a point, which, if successful, initiates the rally.

Probability

The mathematical likelihood of a specific event occurring, often expressed as a number between 0 and 1.