George is trying to forecast the future price of IBM's common stock. To do so he makes use only of past prices of IBM stock. George
A) has adaptive expectations.
B) has rational expectations.
C) is likely to rapidly adjust his forecast to news affecting the future profitability of IBM.
D) is likely to make forecasts that reflect closely IBM stock's fundamental value.
Correct Answer:
Verified
Q7: When market participants use all available information
A)market
Q8: If traders in a market have rational
Q9: Which of the following statements is true
Q10: When market participants have rational expectations,
A)they use
Q11: Which of the following is NOT a
Q13: When market participants have rational expectations,
A)the information
Q14: If a company's sales begin to fall
Q15: Expectations of asset values by participants in
Q16: Acme Widget has been sued. It had
Q17: If the dollar is expected to depreciate
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents