Efficient markets hypothesis Which of the following are consistent with the efficient markets hypothesis? Check all...
Efficient markets hypothesis
Which of the following are consistent with the efficient markets hypothesis? Check all that apply.
Changes in stock prices can be accurately predicted by investors.
Changes in stock prices are impossible to predict.
Stock markets reflect all available information about the value of stocks.
Homework Answers
As per efficient market hypothesis, share price reflects all the available information, and no investor can beat the market until he possesses some insider information. One can only earn a huge sum by investing in risky stocks.
Thus, the statement that is consistent with the efficient markets hypothesis is as follows:
- Changes in stock prices are impossible to predict.
- Stock markets reflect all available information about the value of stocks.
Thus, the correct answers are options B and C.
Add Answer to:
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