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:

Output Effect

The impact that changes in output have on economic activity, such as variations in production levels affecting GDP.

Resource

An economic or productive factor required to accomplish an activity or to provide a service, such as labor, land, capital, and raw materials.

Wage Rate

The amount of compensation a worker receives per unit of time or per task performed.

Employed

A status referring to individuals who are currently working for pay or profit, including those temporarily absent from their jobs.