According to Efficient Market Theory, Which of the Following Can

question 417

Multiple Choice

According to efficient market theory, which of the following can best predict the stock price of a particular company tomorrow?

• A) a finance professor who knows a lot of investment theory
• B) a stock trader who has traded stocks for more than 10 years
• C) that company's employee who has inside information about the company
• D) none of the above: Everyone has an equal chance of predicting future stock prices.

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Definitions:

Denature

The process by which a protein's structure is altered, losing its biological function, typically due to factors like changes in pH, temperature, or exposure to chemicals.

Body Temperature

The measure of the body's ability to generate and get rid of heat, reflecting how well the body is functioning.

Fever

A temporary increase in body temperature, often due to an infection.

Carbonic Acid

A weak acid formed from the dissolution of carbon dioxide in water, playing an important role in the buffering of blood pH.