An Efficient Capital Market Is One in Which

question 30

Multiple Choice

An efficient capital market is one in which:

• A)brokerage commissions are zero.
• B)taxes are irrelevant.
• C)securities always offer a positive NPV.
• D)all investments earn the market rate of return.
• E)security prices reflect all available information.

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Definitions:

Non-Value-Added Cost

This refers to expenses that do not contribute to adding value to a product or service from the customer's perspective, often considered for reduction or elimination in efficiency efforts.

Prescriptive Analytics

The aspect of business analytics focused on providing organizations with actionable recommendations and decisions based on data.

IBM Watson

An AI platform by IBM that enables complex data analysis and insights, often used in various industries for decision-making.