Which of the following is a TRUE statement about stock markets?
A) Economists can make above-average profits in the stock market because of their specialized knowledge of economics.
B) It is always better to buy growth stocks than the older and more stable blue-chip stocks.
C) The stock market on average over time is random and totally unrelated to the performance of the economy.
D) It is illegal for a friend of a corporate executive to make large profits in the stock market by using his inside information.
Correct Answer:
Verified
Q419: The PE ratio for a stock is
A)
Q420: The idea that any public information you
Q421: The theory that there are no predictable
Q422: Inside information
A) applies to proprietorships only.
B) applies
Q423: According to efficient market theory, which of
Q425: Information that is NOT available to the
Q426: The theory that there is no predictable
Q427: A stock that has a price of
Q428: Efficient markets theory suggests that purchasing the
Q429: Exchanges of stocks take place
A) in New
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