Which of the Following Is NOT an Implication of the Efficient

question 31

Multiple Choice

Which of the following is NOT an implication of the efficient market hypothesis for corporate financial officers?

• A)They should ignore dramatic changes in their company's stock price.
• B)There is no point in timing the issue of new securities.
• C)It does not make sense to "play" interest rates by rolling over short-term debt until long-term rates fall.
• D)There is no point in timing stock repurchases in an efficient market.

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Definitions:

Imitated

Copied or replicated someone's actions, behaviors, or performances, often as a way of learning or showing admiration.

Hostile

Refers to feelings of intense anger or aggression towards others or situations.

Rewarded

Receiving a reward, which can be either tangible or intangible, in recognition of one's actions or behavior.

Self-efficacy

An individual's confidence in their capacity to achieve success in particular scenarios or complete a task.