If you carefully research the products, technologies, patents, and management of firms, the efficient markets theory of stock prices, predicts that
a. you will probably reap significant gains
b. you will actually decrease your odds of doing better than the average investor
c. you will probably do about as well as someone who did no research
d. you will lose money unless you failed to consider historical stock price patterns
e. both b and d
C
Economics
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If Sally drives less carefully after buying auto insurance, she illustrates
A) adverse selection. B) negative selection. C) moral hazard. D) lemon hazard.
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Ceteris paribus, if a 20 percent increase in the price of shoes leads to a 10 percent increase in the quantity supplied of shoes, then the price elasticity of supply is equal to _____
a. 2 b. 20 c. 10 d. 0.5 e. 0.2
Economics