Which of the following statements is incorrect? If a security market were strong-form efficient, then it would not be possible to earn abnormally high returns (returns greater than those justified by the risks) by trading on private information, information unavailable to other investors, because there would be no such information. Money markets are wholesale markets in which the minimum transaction is $1 million and transactions of $10 million or $100 million are not uncommon. All the answers are correct except one. A highly liquid financial instrument with a maturity of 90 days would be traded in the money market. A highly liquid financial instrument with a maturity of 90 days would be traded in the capital market A corporation: has its identity defined by its bylaws. has its existence regulated by the rules set forth in its charter. ANSWER: B is ultimately controlled by its board of directors. is a legal entity separate from its owners. is prohibited from entering into contractual agreements. Which of the following statements is incorrect? The difference between the market values of the assets and liabilities provides a better estimate of the market value of stockholders' equity than the difference in the book values. When interest expense is subtracted from EBIT, the result is EBT, or earnings before taxes. Intangible assets with a limited life, such as land, are not depreciated annually. All the answers are correct except one. An increase in bonds and private placement debt is a sourc of cash