Which one of the following statements concerning the random walk hypothesis is correct?

A) Stock price movements are predictable but only over short periods of time.
B) Random price movements support the weak form efficient market hypothesis.
C) Stock prices in general follow repetitive patterns but the actions of individual investors are random in nature.
D) Random price movements indicate that investors can earn abnormal profits on a routine basis.


Answer: B

Business

You might also like to view...

______ includes the processes of reducing, elaborating, transforming, and storing stimuli.

A. Uncertainty B. Cognition C. Causes D. Effects

Business

Why are some employees positive about unions?

What will be an ideal response?

Business

Aggregation is the act of clustering several similar products or services

Indicate whether the statement is true or false

Business

Antiblockbusting statutes have not survived constitutional challenges

Indicate whether the statement is true or false

Business