The Efficient Markets Hypothesis Implies That Prices in the Stock

question 94

Multiple Choice

The efficient markets hypothesis implies that prices in the stock market

• A)follow a definite pattern.
• B)are more likely to go up than down.
• C)always undervalue the true assets of a corporation.
• D)are unpredictable.

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Definitions:

John Calvin

A French theologian, pastor, and reformer in Geneva during the Protestant Reformation, known for his influential work in the development of the Christian theology system known as Calvinism.

Predetermined

Established or decided in advance, not occurring by chance or without prior planning.

Salvation

Within Christian doctrine, the liberation from sin and its resulting punishments is considered to occur through belief in Christ.

Huguenots

French Protestants in the 16th and 17th centuries who faced severe persecution from the Catholic majority, leading many to flee to other countries.