Random Price Movements Indicate ________

question 23

Multiple Choice

Random price movements indicate ________.

• A) irrational markets
• B) that prices cannot equal fundamental values
• C) that technical analysis to uncover trends can be quite useful
• D) that markets are functioning efficiently

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Definitions:

Capital Expenditures

Payments made by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Amortization

The process of gradually reducing a debt through regular payments of both principal and interest.

Risk Optimization

The process of identifying, assessing, and prioritizing risks followed by coordinating and applying resources to minimize, monitor, and control the probability or impact of unfortunate events.

Emerging Companies

are businesses in the early stages of development, usually characterized by innovative products or services and high growth potential.