Rules used to predict movements in stock prices based on past patterns are,according to the efficient markets hypothesis
A)a waste of time.
B)profitably employed by all financial analysts.
C)the most efficient rules to employ.
D)consistent with the random walk hypothesis.

Question

Quizplus · Accepted Answer

According to the efficient markets hypothesis, stock prices reflect all available information and are therefore unpredictable based on past patterns. As a result, rules used to predict movements in stock prices based on past patterns are a waste of time.

Rules Used to Predict Movements in Stock Prices Based on Past