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:

Total Revenue

The total income a firm receives from the sale of its products, calculated as the price per unit times the number of units sold.

Inelastic

A demand is considered inelastic when it does not significantly change with the price of a good or service, indicating that consumers are relatively insensitive to price changes.

Elastic

Describing a situation where the demand or supply for a product or service is sensitive to changes in price or other factors.

Decrease Supply

A situation where there's a reduction in the quantity of a good or service that producers are willing and able to sell at a given price.