Rules Used to Predict Movements in Stock Prices Based on Past

question 48

Multiple Choice

Rules used to predict movements in stock prices based on past patterns are,according to the efficient markets theory,

• 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:

Scores Increasing

A phenomenon or outcome where numeric values, such as test scores or performance metrics, show an upward trend over time.

Flynn Effect

The observed rise over time in standardized intelligence test scores, named after James R. Flynn.

Flynn Effect

The observed rise in average IQ scores over successive generations, attributed to environmental factors such as improved education and nutrition.

Industrialized Countries

Nations that have highly developed industries and infrastructure, often characterized by higher standards of living, technology use, and economic output.