In an Efficient Market, Stocks with Similar Risks Will

question 52

Multiple Choice

In an efficient market, stocks with similar risks will:

• A)have the same market price.
• B)pay similar dividends.
• C)yield the market rate of return.
• D)produce abnormal returns.
• E)have similar rates of return.

---

Definitions:

Financial Statements

Comprehensive reports created from accounting records that convey a business's financial performance, position, and cash flows over a specific period.

Profit and Loss

A financial statement that summarizes the revenues, costs, and expenses incurred during a specified period.

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Trial Balance

A financial report that lists all the balances in each ledger account at a point in time, used to ensure debits equal credits.