If the Market Is Weak Form Efficient

question 10

Multiple Choice

If the market is weak form efficient:

• A)semistrong form efficiency hold.
• B)strong form efficiency must hold.
• C)semistrong form efficiency may hold.
• D)markets are not weak form efficient.
• E)None of the above.

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Definitions:

Allowance for Doubtful Accounts

An estimation of the amount of credit sales that are expected to turn into bad debts.

Bad Debts Expense

The cost associated with accounts receivable that a company is unable to collect, considered an expense on the income statement.

Note Receivable

A financial asset representing a promise to receive a specific amount of money in the future, often with interest.

Receipt

A written acknowledgment that something of value has been transferred from one party to another.