A stock market is efficient when A. stock prices are steady for an extended period. B. stock…

A stock market is efficient when

A. stock prices are steady for an extended period.

B. stock prices fully reflect information that is available to investors.

C. product prices fully reflect information that is available to investors.

D. stock prices equal the average value of the firm.

What are index? funds? A. Index funds focus on stocks of foreign firms and cannot include any Canadian stocks.

B. Index funds attempt to mirror the movements of an existing stock index.

C. Index funds attempt to mirror the movements of foreign currency against Canadian currency.

D. Index funds focus on stocks of Canadian firms and cannot include any foreign stocks.

Why has their popularity? increased? Index funds have become very popular because of their performance relative to other mutual funds. Index funds incur lower fees because they do not have have do not have expenses for research. Because they are not are not are frequently? revised, the? fund’s portfolio has more transaction costs than actively managed portfolios. In? addition, because they engage in a lot of ?trading, index funds often generate capital gains.

Describe the features of an income statement. Choose the correct answer below.

A. Investors use the income statement to determine the? firm’s sources of funds and how it has invested those funds as of a particular point in time.

B. Investors use the income statement to determine how much income the firm generated and what expenses it incurred.

C. Investors use the income statement to calculate the value of their funds based on historical price patterns.

D. Investors use the income statement to determine if the firm must file for bankruptcy or if they require a loan to cover liabilities.

A stock market is efficient when

A.

stock prices are steady for an extended period.

B.

stock prices fully reflect information that is available to investors.

C.

product prices fully reflect information that is available to investors.

D.

stock prices equal the average value of the firm.