Futures Contracts Are Slower to Absorb New Information Than Forward

question 89

True/False

Futures contracts are slower to absorb new information than forward contracts.

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Definitions:

Investment Opportunity

A potential venture or avenue through which an investor can put money into assets or projects expecting a favorable financial return.

Combined Return On Investment

A measure assessing the total financial return of different investments or the aggregate performance of an entire investment portfolio.

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue that exceeds variable costs, contributing to covering fixed costs and generating profit.

Residual Income

The net income that exceeds the minimum required return on investment or capital; often used as a performance measure in managerial accounting.