Which one of the following statements concerning the random walk hypothesis is correct?
A) Random price movements support the weak form efficient markets hypothesis.
B) Random price movements indicate that investors can earn abnormal profits on a routine basis.
C) Share prices in general follow repetitive patterns but the actions of individual investors are random in nature.
D) Share price movements are predictable but only over short periods of time.
Correct Answer:
Verified
Q8: An efficient market reflects
A) all publicly known
Q9: Technical analysts consider the share market to
Q10: The on- balance volume (OBV) indicator
A) rises
Q11: The random walk hypothesis
A) has been disproved
Q12: The Dow Theory
A) is used to predict
Q14: Investors who buy managed funds that have
Q15: The principal objective of technical analysis is
A)
Q16: The strong form of the efficient markets
Q17: Investor overconfidence leads to
A) an overestimation of
Q18: The anomaly known as post- earnings announcement
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