Which of the Following Is an Underlying Assumption of the Existence

question 42

Multiple Choice

Which of the following is an underlying assumption of the existence of an efficient market?

• A) A few number of rational, profit-maximizing investors exist.
• B) Information is costly and not widely available to market participants.
• C) Information arrives at predetermined times.
• D) Investors don't react quickly and fully to new information.
• E) None of the above

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Definitions:

Tactical Planning

Short-term, detailed planning that supports strategic goals by focusing on day-to-day operations and resources.

Operational Planning

The process of creating specific procedures and actions to achieve tactical goals and objectives within a short time frame.

Competitive Differentiation

Unique combination of organizational abilities, products, and approaches that sets a company apart from competitors in the minds of customers.