If You Believe That Stock Market Prices Follow a Random

question 59

Multiple Choice

If you believe that stock market prices follow a random walk,then:

• A) historical price information provides no benefit in predicting future prices.
• B) there is no financial benefit from investing in the stock market.
• C) having inside information will not lead to excess profits.
• D) studying past price movements will lead to excess profits.
• E) you also believe the market is strong-form efficient.

---

Definitions:

Gynecoid

Pertaining to the female body shape or female characteristics, often used in medical contexts to describe physical traits.

-cyst

A suffix used to denote a cyst or cyst-like structure, often used in medical terminology.

Pustule

A small blister or pimple on the skin containing pus.

Turgor

The state of being turgid or swollen, usually referring to the skin's elasticity and how it indicates hydration and health.