If You Are Convinced That Stock Prices Are Impossible to Predict

question 35

Multiple Choice

If you are convinced that stock prices are impossible to predict from available information,then you probably also believe that

• A)the efficient markets hypothesis is not a correct hypothesis.
• B)the stock market is informationally efficient.
• C)the stock market is informationally inefficient.
• D)there is no reason to establish a diversified portfolio of stocks.

---

Definitions:

Accurate Diagnosis

The correct identification of a disease or disorder based on a comprehensive evaluation of symptoms, history, and often diagnostic tests.

Insightful Analysis

A process of evaluating data or information in a deep, meaningful way to uncover hidden patterns or truths.

Electroconvulsive Therapy

A medical treatment most commonly used for severe depression, involving electrical stimulation of the brain under anesthesia.

Memory Loss

The inability to remember information or experiences that should normally be recallable.