Which one of the following statements is NOT true?
A) The overall efficiency of a capital market depends on its operational efficiency and its informational efficiency.
B) Operational efficiency focuses on bringing buyers and sellers together at the lowest possible cost.
C) If market prices reflect all relevant information about securities at a particular point in time, the market is operationally efficient.
D) All of the above are true.
Ans: C) If market prices reflect all relevant information about securities at a particular point in time, the market is operationally efficient.
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What is the expected constant growth rate of dividends for a stock currently priced at $50, that just paid a dividend of $4, and has a required return of 18 percent?
A) 3.41 percent B) 9.26 percent C) 5.50 percent D) 12.5 percent
Which of the following is a not a major disadvantage of Web-based retailing from a retailer's perspective?
a. the need to register with the appropriate search engines b. the difficulty in accurately portraying color and texture c. receiving Web-based sales from traditional bricks-and-mortar customers d. the need to constantly maintain the Web site