If the random walk theory is correct, a prudent investor might choose her stock portfolio by
a. throwing darts at the newspaper's financial page.
b. spending money to consult a stock forecaster.
c. spending time analyzing past stock performance.
d. not investing in stocks at all, since price behavior is completely erratic.
a
Economics
You might also like to view...
If the marginal propensity to consume is 0.75 and autonomous consumption spending will decrease by $30 billion, by how much would net taxes need to decrease in order to have no change in output? (Ignore any timing issues.)
a. $60 billion b. $30 billion c. $90 billion d. $120 billion e. $40 billion
Economics
The process of deciding on and passing fiscal policy legislation creates:
A. an information lag. B. an implementation lag. C. a direction lag. D. a formulation lag.
Economics