Multiple Choice
To say that stock prices follow a "random walk" is to argue that stock prices
A) rise,then fall,then rise again.
B) rise,then fall in a predictable fashion.
C) tend to follow trends.
D) cannot be predicted based on past trends.
Correct Answer:
Verified
Correct Answer:
Verified
Q21: The small-firm effect refers to the<br>A)negative returns
Q22: A stockholder's ownership of a company's stock
Q23: A phenomenon closely related to market overreaction
Q24: Studies of mutual fund performance indicate that
Q25: Suppose Barbara looks out in the morning
Q27: The efficient markets hypothesis suggests that if
Q28: Your best friend calls and gives you
Q29: Does the efficient markets hypothesis imply that
Q30: In the one-period valuation model,an increase in
Q31: The major criticism of the view that