Followers of the random walk hypothesis believe that
A) security analysis is the best tool to utilize when investing in the stock market.
B) the price movements of stocks are unpredictable, and therefore security analysis will not help to predict future market behavior.
C) that traders can earn higher than normal returns by exploiting market anomalies such as the small-firm effect.
D) support levels and resistance lines, when combined with basic chart formations, yield both buy and sell signals.
Answer: B
Business
You might also like to view...
Define brand personality
What will be an ideal response?
Business
When estimating an average corporate after-tax cost of capital, the component cost of equity is multiplied by (1-t) to allow for the tax-deductibility of dividend payments
Indicate whether the statement is true or false.
Business