What Does the Efficient Markets Hypothesis Tell Us About the Movement

question 175

Multiple Choice

What does the efficient markets hypothesis tell us about the movement in a stock price?

• A) It tells what happens to the stock price in the past but not in the future.
• B) It reflects only what the buyers, not the sellers, think about the future movement of the stock price.
• C) It reflects all public information that leads to its movement.
• D) It always predicts how the stock price will move in the future.

---

Definitions:

Cultural Meaning

The significance or interpretation of cultural symbols, practices, and values within a particular society or group.

Standardized Activities

Tasks or processes that are uniform across situations, designed to achieve consistency and efficiency.

Organizational Members

Individuals who belong to and participate in the activities of an organization, contributing to its goals and culture.

Strategy Understanding

The comprehension of the plans and actions companies undertake to compete and achieve their objectives effectively.