Which of the following is an implication of the random walk theory?
a. Experts will be able to make money by picking and choosing the best stocks.
b. There is a systematic pattern to the movement of prices in the stock market.
c. Stock market investors can expect to earn a fairly steady real rate of return of about 7 percent annually.
d. Even experts will be unable to predict the future movement of stock prices with any degree of accuracy.
D
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A firm's expansion path is
A) the firm's production function. B) a curve that makes the marginal product of the last unit of each input equal for each output. C) a curve that shows the least-cost combination of inputs needed to produce each level of output for given input prices. D) none of the above
The labor force is smaller than the total population because the labor force does not include:
A. People who have jobs. B. The very young and old. C. People looking for a job. D. Teachers.
Households ________ factors of production and ________ goods and services
A) supply; demand B) supply; supply C) demand; supply D) demand; demand
Ceteris paribus, if seasonal unemployment increases, the seasonally adjusted economy is
A. On the production possibilities curve that shifts inward. B. Outside the production possibilities curve. C. On the fixed production possibilities curve. D. Inside the production possibilities curve.