Which of the Following Is the Best Statement of the Efficient

question 43

Multiple Choice

Which of the following is the best statement of the efficient markets hypothesis?

• A) Investors with information that a stock had a positive net present value (NPV) will buy it, while investors with information that a stock had a negative net present value (NPV) will sell it.
• B) Investor's decisions are dependent on complete current information of a firm's cash flows and accurate predictions of future cash flows.
• C) Competition between investors works to make the net present value (NPV) of all trading opportunities zero.
• D) A share's price is the aggregate of the information of many investors.

Understand the concept of oxidation states and how they are determined in different chemical species.

Learn the definitions of oxidation and reduction in terms of electron transfer.

Identify changes in oxidation states in chemical reactions.

Distinguish between exothermic and endothermic reactions.

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Definitions:

Rescind

The act of revoking, canceling, or repealing a contract, returning all parties to their state prior to the agreement.

Compensatory Damages

Financial awards given to a plaintiff to compensate for actual losses or harm suffered.

Misrepresentation

A false statement of fact made by one party to another party, which has the effect of inducing that party into the contract.

Spring

A season of the year following winter and preceding summer, characterized by rising temperatures and the budding of plants.