Which of the following statements is INCORRECT?
A)Different companies tailor the EVA® computations to meet their own needs.
B)It can be argued that the stock market is inefficient because stock prices cannot reflect all publicly accessible data.
C)Market efficiency has implications for management action and for investor decisions.
D)Investors seek to manage risk, diversify investments, and minimize transaction costs.

Question

Quizplus · Accepted Answer

The statement that the stock market is inefficient because stock prices cannot reflect all publicly accessible data is incorrect. According to the Efficient Market Hypothesis (EMH), stock prices reflect all available information, making it difficult to consistently achieve higher returns than the overall market.

Which of the Following Statements Is INCORRECT