An Investment Theory Based on the Assumption That Stock Price

question 90

Multiple Choice

An investment theory based on the assumption that stock price movements are purely random is called the ____________ theory.

• A) fundamental
• B) technical
• C) efficient market
• D) primary
• E) market

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Definitions:

Equivalent Interest Rate

A rate that equates two or more interest arrangements by taking into account compounding periods and other terms.

Equivalent Interest Rate

An equivalent interest rate is the interest rate that equates to the compound interest over a different payment frequency, ensuring comparability among rates with different compounding periods.

Nearest 0.01%

Rounding off a number to the closest one-hundredth of a percent for precision in calculation or representation.

Nearest 0.01%

Adjusting values to ensure that they are as close as possible to an accurate hundredth of a percentage point for increased accuracy.