Suppose the Dow Jones Industrial Average has risen for three days in a row.According to the efficient markets theory of stock prices,
A) it will probably fall again tomorrow
B) it will probably rise tomorrow to compensate for recent losses
C) it is more likely to rise tomorrow than if it had fallen three days in a row
D) it is just as likely to rise again tomorrow as if it had fallen three days in a row
E) it will most likely remain unchanged tomorrow
Correct Answer:
Verified
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