Which of the Following Statements Is Correct

question 70

Multiple Choice

Which of the following statements is correct?

• A)If a stock's beta increased but its growth rate remained the same, then the new equilibrium price of the stock will be higher (assuming dividends continue to grow at the constant growth rate).
• B)Market efficiency says that the actual realized returns on all stocks will be equal to the expected rates of return.
• C)Weak-form efficiency suggests that tape watchers and chartists can earn profits by discovering patterns as to when stock prices rise or fall.
• D)An implication of the semistrong form of the efficient markets hypothesis is that you cannot consistently benefit from trading on information published in the company annual reports.

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Definitions:

Regional Centers

Designated areas or institutions that provide specialized services or resources concentrated in a particular geographic area, often for economic or educational purposes.

Emerging Markets

Countries moving toward economic policies of open trade and free markets.

Trademark

Legal protection of a recognizable brand name, design, or logo that calls a specific product to a consumer’s mind.

Brand Logo

A visual symbol or emblem used to identify and promote a brand, making it recognizable to consumers.