Which of the Following Will Lead to Excess Profits in a Semistrong-Form

question 61

Multiple Choice

Which of the following will lead to excess profits in a semistrong-form efficient market?
I.private financial information
II.historical price trends
III.financial analysts reports
IV.unreleased merger plans

• A) I only
• B) I and IV only
• C) II and III only
• D) I, II, and III only
• E) I, III, and IV only

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Definitions:

Net Operating Income

Profit generated from a company's core business operations, excluding deductions of interest and taxes.

Flexible Budget

A flexible budget adjusts based on changes in the volume of activity, allowing for a more accurate comparison of actual to budgeted performance.

Tenant-Days

The total number of days rented across all properties within a specified timeframe, used for calculating occupancy rates and revenue in the hospitality or rental sector.

Administrative Expenses

Costs related to the general operation of a business that are not directly tied to the production of goods or services, such as office supplies, salaries of administrative staff, and utilities.