The basis for efficient markets

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1. The basis for efficient markets includes all of the following? except:

A. A small number of well?informed investors who collude to set fair prices.

B. Investors benefitting by obtaining important new information first.

C. Many investors attempting to maximize their returns from investing.

D. Immediate reactions by investors to pertinent new information.

E. Investors constantly seeking better investment opportunities.

2. A health system has forecast net patient revenue in the first 3 months of the year as follows (figures in millions): January, $200; February, $140; March, $200. 70% of services are usually paid for in the month that they take place, 20% in the following month, and the final 10% in the next month. Receivables at the end of December were $100 million. What are the forecast for outstanding receivables at the end of March?

A. $100 million

B. $78 million

C. $132 million

D. $92 million

Reference no: EM132044624

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