One of the Problems with Attempting to Forecast Stock Market

question 81

Multiple Choice

One of the problems with attempting to forecast stock market values is that

• A) there are no variables that seem to predict market return.
• B) the earnings multiplier approach can only be used at the firm level.
• C) the level of uncertainty surrounding the forecast will always be quite high.
• D) dividend-payout ratios are highly variable.
• E) None of the options are correct.

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Definitions:

Own Sake

Pertains to actions or activities pursued for their intrinsic value or personal fulfillment, without any external reward.

Productive Resource

An economic term for the inputs used in the production of goods or services in the attempt to make an economic profit.

Inelastic

Describing a situation where the demand or supply for a good or service is not highly sensitive to changes in price.