If Markets Are Not Reasonably Efficient, Then

question 46

Multiple Choice

If markets are not reasonably efficient, then

• A) the estimates of expected returns are not needed.
• B) the need for a discount rate to analyze project cash flows is not needed.
• C) estimates of expected returns based on security prices will not be reliable.
• D) None of the above

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Definitions:

Intrinsically Motivated

Being motivated by internal factors or rewards, such as personal satisfaction or enjoyment of a task, rather than by external incentives.

Curious

Having a strong desire to know or learn something.

Grocery Coupons

Vouchers or codes that provide discounts on grocery items, typically used to promote products or encourage consumer purchases.

Train

A series of connected vehicles traveling on railways.