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The Market Price of a Stock Tends to Fluctuate Throughout

Question 36

Multiple Choice

The market price of a stock tends to fluctuate throughout every trading day.This fluctuation is:


A) inconsistent with the semistrong form of the efficient market hypothesis because prices should be stable.
B) inconsistent with the weak form of the efficient market hypothesis because all past information should already be included in the price.
C) consistent with the semistrong form of the efficient market hypothesis because daily prices should adjust as new information becomes available.
D) consistent with the strong form of market efficiency because prices are controlled by insiders.
E) a strong indicator that abnormal profits can be realized.

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