Which of the following statements is most correct in an efficient perfect market?
A) The best predictor of tomorrow's stock price is its price today plus a tiny drift.
B) The best predictor of tomorrow's stock price is its price today plus or minus about 1%.
C) The best predictor of tomorrow's stock price is its price today.
D) The best predictor of tomorrow's stock price is its price today minus any transaction costs.
Correct Answer:
Verified
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