If You Believe That Stock Market Prices Follow a Random

question 80

Multiple Choice

If you believe that stock market prices follow a random walk, then:

• A)historical price information provides no benefit in predicting future prices.
• B)there is no financial benefit from investing in the stock market.
• C)having inside information will not lead to abnormal profits.
• D)studying past price movements will lead to abnormal profits.
• E)you also believe the market is strong form efficient.

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Definitions:

Dominant Social Paradigm

The capitalist view supported by an ideology that legitimates the domination of nature for the material benefit of humans.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.

Species Diversity

The number of species that exist in an ecosystem.

Geographic Area

A specific portion of the Earth's surface defined by natural or artificial boundaries.