Which of the Following Statements About Capital Markets Is True

question 13

Multiple Choice

Which of the following statements about capital markets is true?

• A) Systematic risk refers to the risk arising from a firm's financing decision.
• B) Returns of high-beta stocks tend to vary less than overall market prices.
• C) The efficient market hypothesis states that it is not possible to consistently 'beat the market' by using publicly available information.
• D) If the efficient market hypothesis were true,it would be impossible to make money in the stock market.

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Definitions:

Reprimand

To express to someone strong disapproval or criticism of their actions.

Inconsiderate

Describing behavior or actions that show a lack of concern for the needs, feelings, or well-being of others.

Notify

To inform or alert someone about a piece of information or an event.

Diabetes

A chronic condition characterized by high levels of sugar in the blood due to insulin production or action issues.