Rules Used to Predict Movements in Stock Prices Based on Past

question 74

Multiple Choice

Rules used to predict movements in stock prices based on past patterns are,according to the efficient markets hypothesis

• A)a waste of time.
• B)profitably employed by all financial analysts.
• C)the most efficient rules to employ.
• D)consistent with the random walk hypothesis.

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Definitions:

Net Cash Flow

The amount of cash that is generated or lost over a specific period of time, after accounting for all cash inflows and outflows.

Operating Activities

Day-to-day activities of a company involved in producing and selling its products or services, which are the main source of revenue for the business.

Accounts Payable

Liabilities owed by a business to its creditors for goods and services purchased on credit.

Cash Flow

The total amount of money being transferred into and out of a business, especially as affecting liquidity.