Question
5. True or false? (a) Financing decisions are less easily reversed than investment decisions. (b) Financing decisions don't affect the total size of the cash
5. True or false?
(a) Financing decisions are less easily reversed than investment decisions.
(b) Financing decisions don't affect the total size of the cash flows; they just affect who receives the flows.
(c) Tests have shown that there is almost perfect negative correlation between successive price changes.
(d) The semistrong form of the efficient-market hypothesis states that prices reflect all publicly available information.
(e) In efficient markets the expected return on each stock is the same. (f) Scholess study of the effect of secondary distributions provided evidence that the demand schedule for a single company's shares is highly elastic.
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