The individual stockholders face limited liability in the form of money
Overtype it’s the only one that makes sense out of those choices
The answer is<u> "e. low p/e stocks tend to have positive abnormal returns and one can consistently outperform the market by adopting the contrarian approach exemplified by the reversals phenomenon".</u>
The Efficient Market Hypothesis (EMH) is a investment theory whereby share costs mirror all data and predictable alpha age is unimaginable. Hypothetically, neither specialized nor essential examination can create hazard balanced overabundance returns, or alpha, reliably and just inside data can result in outsized hazard balanced returns. As per the EMH, stocks dependably exchange at their reasonable incentive on stock trades, making it inconceivable for speculators to either buy underestimated stocks or offer stocks at swelled costs. Thusly, it ought to be difficult to beat the general market through master stock determination or market timing, and the main way a speculator can get higher returns is by acquiring more hazardous investments.
As a result of a debit to the Retained earnings account, the balance would <u>decrease</u>.
<h3>What happens when Dividends are declared?</h3>
- They are taken from the profits of the business.
- These profits are represented by the retained earnings account.
Retained earnings are an equity account which means that they are credited when they increase. When they are debited therefore, they will see a decrease.
In conclusion, the balance would decrease.
Find out more on retained earnings at brainly.com/question/26251019.