Share prices that are stable over time ________.
A)indicate that prices are useful indicators of true economic value
B)indicate that the market is not incorporating new information into current share prices
C)ensure that an economy allocates its resources efficiently
D)indicates that returns follow a random walk process

Question

Quizplus · Accepted Answer

Share prices that remain stable over time suggest that the market has not incorporated new information into current share prices. This could occur if investors are not reacting to new economic or company-specific data, or if there is a lack of liquidity in the market. It does not necessarily indicate that prices are useful indicators of true economic value or that the economy is allocating its resources efficiently. It also does not necessarily mean that returns follow a random walk process.

Share Prices That Are Stable Over Time ________