Which of the Following Activities Would Be Most Useful in an Efficient

question 21

Multiple Choice

Which of the following activities would be most useful in an efficient market?

• A) buying and holding a diversified portfolio
• B) searching for patterns in charts based on stock price movements
• C) analyzing financial ratios based on accounting data
• D) buying only securities that have performed well in the recent past

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Definitions:

Selling Price

The price at which a product or service is offered to customers for purchase.

Target Cost

The desired cost of a product determined by subtracting a desired profit margin from a competitive market price, guiding cost management efforts.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit, such as purchasing stocks, bonds, or real estate.

Projected Sales

Forecasted revenue from goods or services that a company plans to sell over a certain period.