The More INEFFICIENT the Market Is, the More Likely It

question 39

True/False

The more INEFFICIENT the market is, the more likely it is that exchange rates are "random walks," with past price behavior providing no clues to the future.

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Definitions:

Theory

A systematic set of ideas intended to explain phenomena, based on general principles independent of the thing to be explained.

Observed Phenomena

Events or occurrences that have been noticed and recorded, especially ones that are unusual or of scientific interest.

Iterative

Pertaining to a process that repeats, usually with the intention of approaching a desired goal or outcome.

Inductive Reasoning

A method of reasoning in which general conclusions are drawn from specific observations or examples.