If the Stock Market Is Efficient and Investors Are Risk

question 44

Multiple Choice

If the stock market is efficient and investors are risk neutral, then

• A)capital gains are always positive.
• B)stock prices are predictable.
• C)the CAPM model works perfectly.
• D)stock prices follow a random walk.

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Definitions:

Reminder Advertising

Advertising designed to keep the brand name in front of consumers or to remind them to purchase the product again.

Personal Selling

A marketing strategy where sales representatives directly interact with customers to provide information and sell products or services.

Continuous Innovation

A process of making regular, incremental improvements to products, services, or processes to enhance value and meet customer needs.

Electric Toothbrush

A toothbrush that uses electric power to move the brush head, often considered more effective in reducing plaque and gingivitis than manual toothbrushes.