The Efficient Markets Hypothesis Says That

question 49

Multiple Choice

The efficient markets hypothesis says that

• A)only individual investors can make money in the stock market.
• B)it should be easy to find stocks whose price differs from their fundamental value.
• C)stock prices follow a random walk.
• D)All of the above are correct.

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Definitions:

New Geographies

Expansion or exploration into new geographical areas or markets by businesses seeking growth or diversification.

New Profit Pools

Areas within a market where new revenue and profit can be generated, often identified through changes in consumer behavior or emerging trends.

New Customer Segments

Identifying and targeting previously unrecognized groups of customers with specific needs or preferences within a market.

Diversification Strategy

A business approach that involves entering into new markets or creating new products to spread risk and depend less on a single market or product line.