Figure 163: Daily Returns to Jim-Bob's Spark Plugs, LLC

question 36

Multiple Choice

Figure 16.3: Daily Returns to Jim-Bob's Spark Plugs, LLC
-Figure 16.3 shows the daily stock returns to Jim-Bob's Sparkplugs, LLC. From this figure you conclude that ________ because ________.

• A) this market is efficient; the data seems to follow a random walk
• B) Jim-Bob does not know how to operate his business; returns can be negative
• C) Jim-Bob can beat the market; average returns are greater than zero
• D) stock prices are predictable; fluctuations are consistent
• E) there is some insider trading occurring; mean returns are zero

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Definitions:

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Railroad's Tracks

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Credit Counseling

A service that offers guidance on how to improve credit scores and manage debt effectively.

Not-for-profit Organization

A not-for-profit organization is a type of organization that does not earn profits for its owners but uses the funds for its goals.