The “random walk” theory

A. has been widely used by stock brokers to advise clients about stock purchases.
B. implies that stock prices can easily be predicted by stock analysts.
C. implies that rumors, news, and other “signals” have an effect on stock prices.
D. implies that a stock’s past performance is an excellent predictor of its future performance.


Answer: B

Economics

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Following deregulation in the airline industry,

A. small carriers have gone out of business but large carriers have not. B. large carriers have gone out of business but small carriers have not. C. both large carriers and small carriers have gone out of business. D. neither large carriers nor small carriers have gone out of business.

Economics

Which of the following statements is correct?

a. Both liquidity preference theory and classical theory assume the interest rate adjusts to bring the money market into equilibrium. b. Both liquidity preference theory and classical theory assume the price level adjusts to bring the money market into equilibrium. c. Liquidity preference theory assumes the interest rate adjusts to bring the money market into equilibrium; classical theory assumes the price level adjusts to bring the money market into equilibrium. d. Liquidity preference theory assumes the price level adjusts to bring the money market into equilibrium; classical theory assumes the interest rate adjusts to bring the money market into equilibrium.

Economics

Which statement is true?

A. The monopolistic competitor has a perfectly elastic demand curve. B. The monopolistic competitor may make a profit in the long run. C. The monopolistic competitor operates at the minimum point of her ATC curve. D. None of these statements are true.

Economics

Which of the following would count as an asset in computing national wealth by using National Net Worth?

A) Wages/salaries B) Rents on property C) Bank Accounts D) Public Lands

Economics