Which of the Following Is the Best Statement of the Efficient

question 35

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.
• E)Investors should only buy stocks with a positive net present value (NPV).

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Definitions:

Empathy and Support

Understanding and sharing the feelings of another, accompanied by a readiness to provide help or support.

Communication

The process of conveying information and meaning through verbal, non-verbal, and written methods among people or machines.

Diagnose Organizational Problems

The process of identifying and understanding issues within an organization that hinder its effectiveness.

Questionnaires and Interviews

Are research tools used to gather data from individuals, with questionnaires typically being written surveys and interviews being verbal or face-to-face interactions.