If you believe that stock prices follow a random walk, then probably you
a. do not believe that there is positive relationship between risk and return.
b. do not believe that stock prices reflect all available information.
c. believe in the validity of the efficient markets hypothesis.
d. believe that it is a good idea to engage in fundamental analysis.
c
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Cyclical unemployment increases during recessions
Indicate whether the statement is true or false
Suppose there is currently a surplus of wheat on the world market. The problem of excess supply may be removed from the market by:
A) lowering the market price. B) shifting the supply curve leftward. C) shifting the demand curve leftward. D) Both A and B are plausible actions.
The assumption of rational self-interest means that economic decision makers
a. have no concern for the welfare of others b. consider the welfare of others to be more important than their own happiness c. know with certainty which choice will have the best result d. make reasonable decisions based on their expectations of results e. do not make incorrect decisions or bad choices
The theoretical model of the intertemporal budget constraint suggests that the most important factor in support of individual savings is:
a. the preference of the individual. b. a higher rate of return on savings. c. an increase in income. d. a decrease in the cost of living.