Predictable cycles in stock price movements:
I. persist for a long time
II. self destruct as soon as investors recognize them
III. never appear as the stock price movements are random
A) I only
B) II only
C) III only
D) I, II, and III

Question

Quizplus · Accepted Answer

Predictable cycles in stock price movements may persist for a long time, but they are not guaranteed to continue indefinitely. However, self-fulfilling prophecies can cause investors to try to exploit these cycles, ultimately leading to their self-destruction once the pattern is recognized and investors adjust their behavior accordingly. Random movements are possible, but not all movements are necessarily unpredictable.

Predictable Cycles in Stock Price Movements