The random walk theory indicates that
a. investors can make money by purchasing stocks that are widely expected to earn substantial profits in the future.
b. while changes in the prices of specific stocks are difficult to predict, experts are able to forecast the future direction of broad stock market indexes with a high degree of accuracy.
c. changes in stock prices are driven by surprise occurrences that are difficult for anyone to predict accurately.
d. managed mutual funds will persistently outperform indexed funds.
C
You might also like to view...
Assume that a perfectly competitive firm hires workers from a perfectly competitive market for labor. The marginal product of a worker is 10 units per day
If the good that the worker produces is sold for $5, what is the maximum daily wage that should be offered to the worker?
It can be said that, ultimately, consumers are the driving force behind answers to the three basic economic questions faced by societies. Explain the consumer's role in providing these answers
A dominant strategy is one that gives a player in a game a bigger payoff than the other player receives
a. True b. False Indicate whether the statement is true or false
Which of the following is NOT a source of rivalry in economic transactions?
A. Producer?producer rivalry B. Consumer?producer rivalry C. Government?producer rivalry D. All of the statements associated with this question are correct.