Rules Used to Predict Movements in Stock Prices Based on Past

question 74

Multiple Choice

Rules used to predict movements in stock prices based on past patterns are,according to the efficient markets hypothesis

• A)a waste of time.
• B)profitably employed by all financial analysts.
• C)the most efficient rules to employ.
• D)consistent with the random walk hypothesis.

---

Definitions:

Profitability Ratios

Financial metrics used to evaluate a company's ability to generate profit relative to its revenue, assets, equity, or other financial metrics.

Operating Income

The profit realized from a business's operations after subtracting operating expenses from gross income.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.