In an Efficient Capital Market,the Appropriate Investment Strategy for Most

question 14

Multiple Choice

In an efficient capital market,the appropriate investment strategy for most investors is the ________.

• A) daily trading and high volume approach
• B) inactive portfolio approach
• C) active portfolio approach
• D) buy low and sell high approach

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Definitions:

Inventory

The total amount of goods and materials on hand that are available for sale or will be used in production.

Tax Bracket

A range of income subject to a particular rate of income tax, with higher incomes typically taxed at higher rates.

Depreciation

The method by which a business deducts the cost of tangible assets over time, recognizing the decrease in value of assets.

Taxed

Refers to income, property, or purchases on which tax is imposed by governmental authorities.