The Efficient Markets Hypothesis States That

question 65

Multiple Choice

The efficient markets hypothesis states that:

• A) stock prices fluctuate following the path of business cycles.
• B) at any time, stock prices are fairly valued, reflecting all available information.
• C) stock prices move irrationally and rather unpredictably.
• D) stock prices are easily manipulated by irrational exuberance.

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Definitions:

Opportunity Cost

The act of foregoing potential opportunities for gain from several alternatives when deciding on one.

T-shirts

Casual garments made from fabric, typically short-sleeved and collarless, worn as informal wear or under clothing.

Rice

A cereal grain which is a staple food for a large part of the world's human population, especially in Asia.

World Price

The international market price of a good or service, influenced by global supply and demand conditions.