If a market is informationally efficient, the current price of a corporation's common stock shares is the best predictor of its future performance because it incorporates all of the information currently known about its prospects
Indicate whether the statement is true or false
F
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Economic models
A. are always based on realistic assumptions. B. usually predict perfectly. C. can never be tested with real-world data. D. are used to describe cause-and-effect relationships. E. are too simple to be of much use.
Elasticity differs from the slope as a measure of responsiveness to changes in prices because:
A. elasticity changes depending on the currency prices are measured in, but this does not affect the slope. B. percentage changes do not depend on the units of measurement, whereas the slope does. C. elasticity is only useful for describing demand, but the slope is useful for describing demand and supply. D. the slope is always negative, while elasticity is not.
The dates of the "official" peaks and troughs of business cycles in the United States are determined by the:
A. Congressional Budget Office. B. Federal Reserve Board. C. Council of Economic Advisers. D. National Bureau of Economic Research
This Application addresses the concept of
A) inflation and the housing boom. B) the dangers of high interest rates. C) increases in consumer wealth. D) the down-side of leverage.