Which of the Following Is One of the Characteristics of Perfect

question 61

Multiple Choice

Which of the following is one of the characteristics of perfect capital markets?

• A)All investors hold the efficient portfolio of assets.
• B)There are no taxes,but there may be transaction costs associated with security trading.
• C)A firm's financing decisions may change the cash flows generated by its investments.
• D)Investors and firms can trade the same set of securities at competitive market prices equal to the present value (PV)of their future cash flows.
• E)No market participants engage in illegal behaviour.

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Definitions:

Emotional Maladjustment

A state in which an individual's emotional responses are inappropriate or out of proportion to their socio-cultural environment.

Maslow

Refers to Abraham Maslow, an American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Need

A requirement essential for an organism's survival, growth, and well-being.

Self-actualization

A concept in psychology representing the realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.