According to the Efficient Markets Hypothesis, If You Are Trying

question 81

Multiple Choice

According to the efficient markets hypothesis, if you are trying to find out what a stock is really worth, you should:

• A) look up the current stock price.
• B) study past trends in the stock price.
• C) study the underlying determinants of the company's future profits.
• D) examine its recent price changes.

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Definitions:

Consistency

The characteristic of being coherent, uniform, or performing in a predictable manner over time.

Parallelism

The use of components in a sentence that are grammatically the same; or similar in their construction, sound, meaning, or meter.

Concise Language

Using few words to express an idea efficiently without unnecessary elaboration or redundancy.

Enzymes

Proteins that act as biological catalysts, speeding up reactions in living organisms without being consumed in the process.