If You Are Convinced That Stock Prices Are Impossible to Predict

question 35

Multiple Choice

If you are convinced that stock prices are impossible to predict from available information,then you probably also believe that

• A)the efficient markets hypothesis is not a correct hypothesis.
• B)the stock market is informationally efficient.
• C)the stock market is informationally inefficient.
• D)there is no reason to establish a diversified portfolio of stocks.

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Definitions:

Vacuum

In an engine, air pressure that is lower than atmospheric pressure.

Hydro-Boost

A power brake booster that uses hydraulic pressure from the power steering system to assist in braking.

Power Steering System

A system in vehicles that uses hydraulic or electric power to assist the driver in steering, reducing manual effort.

Wheel Speed Sensors

An ABS system sensor that enables the EBCM to determine wheel speed.