mhw8ANS - Mhw8ans Question7 - Single Correct 1.0 Point...

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Mhw8ans Question7 - Single Correct 1.0 Point Another way to state the efficient markets condition is: in an efficient market, A unexploited profit opportunities will never exist. B every financial market participant must be well informed about securities. C arbitragers guarantee that unexploited profit opportunities never exist. D unexploited profit opportunities will be quickly eliminated. THE ‘PARADOX’ OF EFFICIENT MARKETS IS THAT THERE ARE INEFFICIENCIES THAT SOME CAN PROFIT FROM, BUT THEY ARE ELIMINATED VERY QUICKLY Question8 - Single Correct 1.0 Point The subprime financial crisis lead to a decline in stock prices because A of a lowered expected dividend growth rate. B higher expected future stock prices. C of a lowered required return on investment in equity. D higher current dividends. DISCOUNTED DIVIDENDS MODEL SP=D/(RISK ADJUSTED DISCOUNT RATE-DIV GROWTH RATE) - BETTER ANSWER IS 3 REASONS: D DOWN, RISK PREMIUM (RISK ADJUSTED DISCOUNT RATE) UP, EXPECTED DIVIDEND GROWTH RATE DOWN Question13 - Single Correct 1.0 Point American businesses get their external funds primarily from A bank loans. B stock issues.
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mhw8ANS - Mhw8ans Question7 - Single Correct 1.0 Point...

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