Which of the following about the stock market is true?
A) Investment in the stock market is a relatively foolproof method for an investor to earn a high rate of return during the next five years.
B) Current stock prices already reflect information that is known with a high degree of certainty.
C) Experts are able to predict changes in the direction of the broad stock market indexes with a high degree of accuracy.
D) While changes in the prices of specific stocks are difficult to predict, it is relatively easy to predict the future direction of the broad stock market.
E) Both c and d are true.
Correct Answer:
Verified
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