Which Statement Is Correct

question 40

Multiple Choice

Which statement is correct?

• A) It is much easier to judge whether the absolute level of stock prices is correct rather than whether their relative levels are correct.
• B) It is much easier to judge whether relative stock prices are correct than to judge whether their absolute level is correct.
• C) Most tests of market efficiency are concerned with the absolute level of stock prices.
• D) If relative prices are correct, then absolute prices must be correct also.

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Definitions:

Cornell System

A systematic method of note-taking that involves dividing paper into sections to organize notes and summaries for effective study.

Auditory Learner

A person who learns best through listening and benefits greatly from oral instruction and discussions.

Reading Comprehension

The ability to understand and interpret the meaning from written text, grasping its main ideas, themes, and details.

Modern Literature

Literary works produced in the late 19th century onwards, often characterized by a break from traditional styles and a focus on new forms of expression.