No particular stock is a better buy than any other stock if
a. stock prices are driven by investors' "animal spirits.".
b. the random-walk theory of stock prices is incorrect.
c. the efficient markets hypothesis is correct.
d. actively managed mutual funds always outperform index funds.
c
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Which of the following items are included in money supply M2 but not M1?
A. Federal Reserve notes B. savings deposits C. coins D. checkable deposits
Average variable cost is equal to
A) average total cost minus average fixed cost. B) average total cost multiplied by output. C) total cost divided by output. D) the change in total cost divided by the change in output.
The demand for capital, as an input in production, will decrease if:
a. labor and capital are substitutes in production and the supply of labor decreases. b. the demand for the final good it produces increases. c. capital becomes more productive. d. the price of capital decreases. e. labor and capital are substitutes in production and the wage rate declines.
From 1990 to 2004, developed countries that experienced larger increases in Real GDP tended also to experience higher rates of
A. population growth. B. unemployment. C. deflation. D. productivity growth.