Multiple Choice
If in an efficient market all prices are correct and reflect market fundamentals,which of the following is a false statement?
A) A stock that has done poorly in the past is more likely to do well in the future.
B) One investment is as good as any other because the securities' prices are correct.
C) A security's price reflects all available information about the intrinsic value of the security.
D) Security prices can be used by managers to assess their cost of capital accurately.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: An expectation may fail to be rational
Q8: If additional information is not used when
Q10: You have observed that the forecasts of
Q19: For small investors,the best way to pursue
Q43: You read a story in the newspaper
Q47: Using the Gordon growth model,a stock's current
Q76: If in an efficient market all prices
Q81: If a mutual fund outperforms the market
Q88: The value of any investment is found
Q101: Evidence in support of the efficient markets