Which Statement About Capital Market Research and Financial Statement Analysis

question 28

Multiple Choice

Which statement about capital market research and financial statement analysis is correct?

• A) The evidence of share market research on the efficiency of the market is conclusive.
• B) Little research has been carried out to determine the efficiency of share markets.
• C) Financial analysis is of little use to investors if share markets are inefficient.
• D) Analysts relying on financial statement analysis assume that share markets are inefficient.

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Definitions:

Feedback

Information provided by an agent (e.g., an individual, group, etc.) regarding aspects of one's performance or understanding, intended to guide future improvement.

Corrective

Intended to rectify or amend something that is wrong or inaccurate.

Supportive

Showcasing a willingness to assist, encourage, and provide comfort to others, often critical in personal and professional relationships.

360-Degree Feedback

A performance appraisal method where an employee receives feedback from all directions - supervisors, peers, subordinates, and sometimes, clients.