A person who believes strongly in the use of fundamental analysis to choose a portfolio of stocks
a. has a better chance of outperforming the market if stock prices follow a random walk than if they do not follow a random walk.
b. almost always chooses to hold index funds in his or her portfolio rather than actively-managed funds.
c. is spending his or her time wisely if the efficient markets hypothesis is correct.
d. is interested in the likely ability of a corporation to pay dividends in the future.
d
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Secondary reserves are so called because
A) they can be converted into cash with low transactions costs. B) they are not easily converted into cash, and are, therefore, of secondary importance to banking firms. C) 50% of these assets count toward meeting required reserves. D) they rank second to bank vault cash in importance of bank holdings.
According to the new classical view, aggregate output will differ from full-employment output
A) whenever saving does not equal investment. B) only if the actual price level does not equal the expected price level. C) only if the federal government's expenditures are greater than its tax receipts. D) whenever imports exceed exports.