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
Correct Answer:
Verified
Correct Answer:
Verified
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