No Particular Stock Is a Better Buy Than Any Other

question 9

Multiple Choice

No particular stock is a better buy than any other stock if

• A)stock prices are driven by investors' "animal spirits."
• B)the random-walk theory of stock prices is incorrect.
• C)the efficient markets hypothesis is correct.
• D)actively managed mutual funds always outperform index funds.

---

Definitions:

Understood

Acknowledged or comprehended without the need for explicit statement or instruction, often within the context of communication.

Terminal Values

Fundamental beliefs that a person holds regarding the goals they aim to achieve in life; considered end states of existence.

Ideal Values

Principles or standards of behavior considered most important and desirable by an individual or group.

Everyday Action-directed

Pertaining to activities or tasks that people engage in on a regular basis, with a focus on achieving specific outcomes.