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:

PDQ

An acronym for "Pretty Darn Quick," often used informally to describe something happening in a fast or efficient manner.

Kanban

A visual scheduling system for lean manufacturing and just-in-time manufacturing (JIT), aiming to control work-in-progress for optimal efficiency.

Feedforward Control

A proactive method of control in management that focuses on identifying and preventing potential problems before they occur.

Consumer

An individual who purchases goods and services for personal use.