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:

Organic Material

Matter composed of organic compounds that has come from the remains of organisms such as plants and animals and their waste products in the environment.

Soil Erosion

The wearing away or removal of soil from the land; although soil erosion occurs naturally from precipitation and runoff, human activities (such as clearing the land) accelerate it.

Mosses

Small, green, non-vascular plants that usually grow in dense green clumps or mats, often in damp or shady locations.

Vascular Strand

Vascular strand refers to a bundle of plant tissues that includes xylem and phloem, conducting water, nutrients, and sugars throughout the plant.