According to the Efficient Markets Hypothesis,the Difference Between Today's Price

question 99

Multiple Choice

According to the efficient markets hypothesis,the difference between today's price for a share of stock and tomorrow's price is

• A) predictable given currently available information.
• B) equal to today's price minus yesterday's price.
• C) unforecastable.
• D) zero.

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Definitions:

Management

The process of directing and controlling a group of people or an organization to reach a specific set of goals or objectives.

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns, encompassing a variety of assets including stocks, bonds, and real estate.

ROA

Return on Assets, a profitability ratio that measures how efficiently a company can manage its assets to produce profit during a period.

Effective Utilization

Effective utilization refers to how efficiently resources, such as labor and equipment, are used to produce goods or services.