The Statement That There Are No Free Lunches on Wall

question 91

Multiple Choice

The statement that there are no free lunches on Wall Street suggests that:

• A) the market is strong-form efficient.
• B) there is no return to technical or fundamental analysis.
• C) security prices reflect all available information.
• D) food stocks offer the lowest rates of return.

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Definitions:

Accumulated Profits

The retained earnings of a company, representing the net income that has not been distributed to shareholders as dividends and is reinvested in the business.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the U.S. to govern financial reporting and ensure consistency.