Suppose the Dow Jones Industrial Average Has Risen for Three

question 98

Multiple Choice

Suppose the Dow Jones Industrial Average has risen for three days in a row.According to the efficient markets theory of stock prices,

• A)it will probably fall again tomorrow
• B)it will probably rise tomorrow to compensate for recent losses
• C)it is more likely to rise tomorrow than if it had fallen three days in a row
• D)it is just as likely to rise again tomorrow as if it had fallen three days in a row
• E)it will most likely remain unchanged tomorrow

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Definitions:

Natural Causes

A term used to describe a death that results solely from an illness or internal malfunction of the body not directly influenced by external forces.

Negligence

Failure to take proper care in doing something, leading to damage or injury to another party.

Unconscionable

Describes something that is extremely unfair, unreasonable, or unethical, typically in the context of a contract or agreement.

Common Carrier

A service or company that is available to the public for transport of goods or people, under the regulation of governmental agencies.