Which of the Following Statements Is False

question 92

Multiple Choice

Which of the following statements is false?

• A) Many managers make the mistake of focusing on accounting earnings as opposed to free cash flows.
• B) Given accurate information about any two of these variables (a firm's future cash flows, its cost of capital, and its share price) a valuation model allows use to make inferences about the third variable.
• C) A valuation model will tell us the most about the variable for which our prior information is the least reliable.
• D) The idea that investors are able to identify positive NPV trading opportunities is referred to as the efficient markets hypothesis.

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Definitions:

Projective Measure

A type of personality test in which a person responds to ambiguous stimuli, revealing hidden emotions and internal conflicts.

Personality Approach

A theoretical perspective in psychology that focuses on studying individual differences in behavior and thought processes.

Measure Weakness

The process of identifying and assessing areas where performance or capability is below the desired standard.

Upward Comparison

The act of comparing oneself to others who are better off or more skilled, which can affect one's self-esteem.