________ Is a Simple,yet Effective,method for Catching or Preventing Many

question 39

Multiple Choice

________ is a simple,yet effective,method for catching or preventing many types of employee fraud.

• A) Requiring all employees to take annual vacations
• B) Monitoring employee bank accounts and net worth
• C) Monitoring employee behavior using video cameras
• D) Explaining that fraud is illegal and will be severely punished to employees

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Definitions:

Efficient Market Hypothesis

A theory that suggests all known information is already reflected in stock prices; therefore, it is impossible to consistently achieve higher returns than the overall market.

Nonzero Alphas

Refers to the active return on an investment, indicating performance that deviates from the expected risk-return trade-off.

Neglected-firm Effect

A phenomenon where lesser-known, smaller companies may outperform larger companies because they receive less attention from analysts.

January Effect

A seasonal increase in stock market prices that typically occurs during the month of January, often attributed to the buying of stocks that were sold at the end of the previous year for tax purposes.