Which of the Following Statements Is FALSE

question 92

Multiple Choice

Which of the following statements is FALSE?

• A)If the profit opportunities from having private information are large,other individuals will attempt to gain the expertise and devote the resources needed to acquire it.
• B)When private information is relegated to the hands of a relatively small number of investors,these investors may be able to profit by trading on their information.
• C)When a buyer seeks to buy a stock,the willingness of other parties to sell the same stock suggests that they value the stock differently.
• D)Since stock markets aggregate the information and view of many different investors,we expect the stock price to react slowly to new publicly available information as the investors continue to trade until a consensus is reached as to the new value of the stock.

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Definitions:

Supplier Expertise

The specialized knowledge or skills held by a supplier, making them a preferred choice for delivering specific goods or services.

Traditional Criteria

Established or long-standing principles and standards used to make decisions, evaluate performance, or define quality in various fields.

Standard Specification

Detailed and precise criteria set to describe the quality, material, and performance requirements of products, services, or processes.

Universal Specification

A set of guidelines or criteria designed to be applicable across a wide range of products, services, or industries.