If a stock's price decreased during the past week, what is the most likely prediction about this week's price change?
A)price will reverse last week's loss and go up
B)price will continue last week's decline
C)price will stand still until new information is released
D)either direction of price change is equally likely

Question

Quizplus · Accepted Answer

The stock market is influenced by a multitude of factors including economic indicators, company performance, and investor sentiment, making it unpredictable on a short-term basis. Therefore, without specific information about the stock or market conditions, predicting the direction of a stock's price movement after a decline is speculative, making either direction of price change equally likely.

If a Stock's Price Decreased During the Past Week, What