Which of the Following Statements Is FALSE

question 40

Multiple Choice

Which of the following statements is FALSE?

• A)Stock markets aggregate the information and view of many different investors.
• B)Only in the relatively rare case in which we have some superior information that other investors lack regarding the firm's cash flows and cost of capital would it make sense to second-guess the market stock price.
• C)In most situations,a valuation model is best applied to tell us something about the value of the firm's stock.
• D)The efficient market hypothesis implies that securities will be fairly priced,based on their future cash flows,given all information that is available to investors.

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Definitions:

Retina

The light-sensitive layer of tissue at the back of the inner eye, which converts light images into electrical signals sent to the brain.

Lens

An optical device capable of converging or diverging light, or a transparent structure in the eye which focuses light onto the retina to facilitate vision.

Chemoreceptor

Sensory receptor that is sensitive to chemical stimulation—for example, receptors for taste and smell.

Thermoreceptor

Sensory receptor that detects heat.