Which of the Following Is an Assumption of the CMT

question 32

Multiple Choice

Which of the following is an assumption of the CMT?

• A)Single investors can affect the market by their buying and selling decisions.
• B)There is no inflation.
• C)Investors prefer capital gains over dividends.
• D)Different investors have different probability distributions..

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Definitions:

Equity Financing

The method of raising capital by selling company shares to investors. In return, shareholders receive ownership interests in the company.

Balance Sheet

A report detailing a business's assets, liabilities, and owners' equity at a given moment.

Income Statement

A financial document that reports a company's revenues, expenses, and profits over a specific period.

Statement Of Cash Flows

Reports the impact of a firm’s operating, investing, and financing activities on cash flows over an accounting period.