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SCENARIO 2-2 Work on your team is difficult because of the other two individuals.The work has been divided among the three of you,but each time your team meets Janet and Jim disagree about the progress that the team has made on the project.Janet is convinced that Jim's lack of progress is because he is an inherently lazy male rather than because some information is still not available to him because Janet has not completed some of her work according to the schedule she agreed to.The truth seems to be that Janet is not doing her part of the work.
-Referring to Scenario 2-2,you might attempt to understand Janet and Jim by using ________ theory.
Semistrong-Form Efficient
A market hypothesis stating that share prices incorporate all publicly available information, making it impossible to consistently achieve higher returns.
Weak-Form Efficient
A market hypothesis suggesting that all past prices of stock are reflected in the current price, hence historical data cannot be used to predict future prices.
Strong-Form Efficient
A hypothesis that states all information, both public and private, is completely accounted for in stock prices, and that no investor can achieve consistently higher returns.
CAPM
The Capital Asset Pricing Model, a formula used to determine the expected return of an asset based on its beta and expected market returns, thus assessing its inherent risk and cost of capital.
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