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.

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Definitions:

Competing Products

Goods or services that serve as alternatives to each other, satisfying the same need or want, and thus compete in the same market.

Elastic Demand

A condition where the quantity demanded of a good or service significantly changes due to a change in its price.

Inelastic Demand

A market scenario where the quantity demanded of a good or service changes minimally in response to price changes.

Perfectly Inelastic

A situation where the quantity demanded or supplied of a good does not change regardless of the changes in its price.