If you are convinced that stock prices are impossible to predict from available information,then you probably also believe that
A)the efficient markets hypothesis is not a correct hypothesis.
B)the stock market is informationally efficient.
C)the stock market is informationally inefficient.
D)there is no reason to establish a diversified portfolio of stocks.

Question

Quizplus · Accepted Answer

The efficient markets hypothesis suggests that stock prices reflect all publicly available information, making it difficult to predict prices or gain an edge over other investors. Therefore, if one believes that stock prices are impossible to predict, they are likely to also believe in the efficiency of the market.

If You Are Convinced That Stock Prices Are Impossible to Predict