Financial Managers Must Be Cognizant of Market Efficiency Because

question 37

Multiple Choice

Financial managers must be cognizant of market efficiency because:

• A)manipulating earnings by accounting changes does not fool the market.
• B)timing security sales is futile because without private information the current price reflects all known information.
• C)there is limited price pressure from any large sale of equity depressing prices momentarily which then recover to prior levels.
• D)All of the above.
• E)None of the above.

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