What Does the Efficient Markets Hypothesis Tell Us About the Movement

question 175

Multiple Choice

What does the efficient markets hypothesis tell us about the movement in a stock price?

• A) It tells what happens to the stock price in the past but not in the future.
• B) It reflects only what the buyers, not the sellers, think about the future movement of the stock price.
• C) It reflects all public information that leads to its movement.
• D) It always predicts how the stock price will move in the future.

---

Definitions:

Albanian

Refers to anything pertaining to Albania, including its language, culture, or people.

Collectivistic Cultural

A societal perspective that emphasizes the needs, goals, and views of the group over those of the individual, often found in Asian, African, and Latin American cultures.

Cultural Outlook

The perspective or viewpoint that is shaped by the beliefs, values, and practices of a culture, influencing how individuals interpret the world around them.

Cultural System

The collection of shared beliefs, values, norms, and practices that dictates the way of life for a group of people or society.