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.

---

Definitions:

Competitive Advantage

A scenario or element that positions a firm in a more favorable or advantageous spot relative to its competitors.

Unique Products

Goods that are distinct in nature, offering uncommon features or benefits not typically found in similar items.

Market Demand Curve

The market demand curve represents the total quantity of a good or service that all consumers in a market are willing to purchase at various prices.

Quantity Demanded

Quantity demanded refers to the amount of a good or service consumers are willing and able to purchase at a given price.