In a Perfectly Efficient Market the Best Investment Strategy Is

question 74

Multiple Choice

In a perfectly efficient market the best investment strategy is probably a/an

• A) active strategy
• B) passive strategy
• C) asset allocation
• D) market timing

Understand the role of descriptive and injunctive norms in shaping consumer behaviour.

Identify obstacles to predicting behaviour with the theory of reasoned action and the Fishbein models.

Appreciate modifications made to the original Fishbein model to improve attitude-behaviour predictions.

Understand and describe the concept of descriptive norms.

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Definitions:

Retained Earnings

Accumulated net income left over for a company after it has paid out dividends to its shareholders.

Prior Period Adjustment

Adjustments made to the financial statements of a prior period to correct an error or to account for a retroactive application of new accounting policies.

Retained Earnings

The share of a company's earnings that are held back and not distributed as dividends to its shareholders.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's financial performance.