The Efficient Markets Hypothesis Says That

question 49

Multiple Choice

The efficient markets hypothesis says that

• A)only individual investors can make money in the stock market.
• B)it should be easy to find stocks whose price differs from their fundamental value.
• C)stock prices follow a random walk.
• D)All of the above are correct.

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Definitions:

Current Assets

Assets likely to be converted into cash, sold, or consumed within a year or the normal operating cycle of the business.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a business.

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue.

Dollar of Sales

The total monetary value of sales transactions completed over a specific period.