If stock prices follow a random walk,
a. speculation in the stock market destabilizes prices.
b. a stock's past performance is not a good indicator of its future performance.
c. rumors, news, and other "signals" have no effect on stock prices.
d. the stock market does not participate in channeling resources toward firms with high stock prices.
b
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The quote, "If I have seen farther than others, it is because I have stood on the shoulders of giants" is attributed to ________
A) Albert Einstein B) Paul Romer C) Friedrich Nietszche D) Sir Isaac Newton
When a firm creates negative externalities by polluting, in order to achieve the socially efficient outcome: a. the firm's production should be prohibited
b. the firm's production should be increased and the price of its output should be decreased. c. the firm's production should be increased and the price of its output should be increased. d. the firm's production should be reduced and the price of its output should be increased.