For Corporate Financial Managers an Important Lesson of Market Efficiency

question 106

Multiple Choice

For corporate financial managers an important lesson of market efficiency is:

• A) Trust market prices unless you have a clear advantage that ensures the odds are in your favor.
• B) Issue stock after a rise in price.
• C) Be on the lookout for undervalued companies to take over.
• D) Your company should be able to make healthy profits from its foreign exchange dealings.