According to the random walk theory
A) today's stock price will be related to yesterday's stock price.
B) successive prices of a stock are independent of each other.
C) stock prices can easily be predicted for as much as 52 weeks into the future.
D) stock prices rise and fall in predictable cycles that correspond with the overall business cycle.
Answer: B
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Using Figure 1 below, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P5 and Y1.
B. P5 and Y2.
C. P4 and Y1.
D. P4 and Y2.
Public choice theory indicates that representative government yields outcomes more consistent with economic efficiency when a close relationship exists between the benefits received and the costs borne by each voter. Which of the following methods of financing a government program will most likely result in a close relationship between voter benefits and costs?
a. progressive income tax b. retail sales tax c. property tax d. user charges
What is the fundamental basis for trade among nations?
a. shortages or surpluses in nations that do not trade b. misguided economic policies c. absolute advantage d. comparative advantage
A right granted by government to a creator of a written or recorded work to be the exclusive seller of that work for a limited period of time is called a
A. patent. B. copyright. C. tangible asset. D. trademark.