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:

Nonrenewable Resource

A natural resource that cannot be replenished or takes millions of years to form again, such as coal, oil, and natural gas.

Future Profits

This concept pertains to the expected earnings or gains that a business anticipates receiving in the upcoming periods.

Current Extraction

The process of removing natural resources, such as minerals or timber, from the earth at the present time.

Increase

A rise or growth in quantity, size, or degree.