If Markets Are Not Reasonably Efficient, Then

question 32

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 that were based on security prices will not be reliable.
• D) none of the above.

---

Definitions:

Muscle Fatigue

A condition following physical activity characterized by a decrease in muscle power output, leading to reduced performance.

Lactic Acid

A substance produced in the muscles during strenuous exercise, often associated with muscle fatigue.

Contract

A voluntary agreement between two parties in which specific promises are made.

ATP

Adenosine triphosphate, an organic compound that provides energy to drive many processes in living cells, including muscle contraction and chemical synthesis.