The Process of Evaluating Performance Can Be Improved by Using

question 77

True/False

The process of evaluating performance can be improved by using budgets.

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Definitions:

Strong-form Efficiency

A market hypothesis suggesting that prices fully reflect all available information, both public and private, making it impossible for investors to consistently achieve higher returns.

Semistrong-form Efficiency

A hypothesis that asserts the market price of securities already reflects all publicly available information, making it hard to achieve higher returns.

Weak-form Efficiency

A market efficiency theory suggesting that past stock prices and volume data do not affect stock prices and thus cannot predict future stock movements.

Positive-earnings Surprises

Situations where the reported earnings of a company exceed the expected earnings, often leading to a positive reaction in the stock market.