Which of the Following Statements Is Correct

question 70

Multiple Choice

Which of the following statements is correct?

• A)If a stock's beta increased but its growth rate remained the same, then the new equilibrium price of the stock will be higher (assuming dividends continue to grow at the constant growth rate).
• B)Market efficiency says that the actual realized returns on all stocks will be equal to the expected rates of return.
• C)Weak-form efficiency suggests that tape watchers and chartists can earn profits by discovering patterns as to when stock prices rise or fall.
• D)An implication of the semistrong form of the efficient markets hypothesis is that you cannot consistently benefit from trading on information published in the company annual reports.

---

Definitions:

Negotiation

A process of discussion aimed at reaching an agreement between two or more parties.

Indorses

A variant spelling of "endorses," meaning to sign the back of a check or document, transferring rights or expressing approval.

Unauthorized Indorsement

A signature placed on a negotiable instrument (like a check) without proper authority or consent, often leading to questions of validity and fraud.

Burden Of Loss

Refers to the responsibility to bear the financial impact of damage, loss, or destruction of property in legal or insurance contexts.