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:

Best Practices

Methods or techniques that have been recognized as the most effective and efficient in achieving desired outcomes and are used as benchmarks.

Advocacy

Activities aimed at influencing public policy and resource allocation decisions within political, economic, and social systems and institutions.

Public Policy

The principles, often unwritten, on which social laws are based; it guides decisions and actions of the government.

Political Activity

Actions or endeavors undertaken to influence government policy or election results, typically by individuals or organizations.