The Hypothesis That States That It Is Nearly Impossible to Predict

question 58

Multiple Choice

The hypothesis that states that it is nearly impossible to predict exactly when stocks will do well relative to bonds is known as the:

• A) fair price hypothesis.
• B) efficient market hypothesis.
• C) full information hypothesis.
• D) full price hypothesis.

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Definitions:

Sales Promotion

A marketing strategy involving the short-term use of incentives or discounts to encourage the purchase of a product or service.

Rebate

A consumer discount in which a portion of the purchase price is returned to the buyer in cash; the manufacturer, not the retailer, issues the refund.

Samples

Small portions or quantities of a product distributed free or at a minimal cost to serve as a representation of the whole, allowing potential customers to test before making a purchase.

Premiums

Items or services received for free or at a low cost as an incentive to purchase a product or service, or an additional cost for higher-quality services or products.