Ron decides which stocks to purchase by throwing darts at the stock pages of The Wall Street Journal.Ron probably believes that
A)stock prices follow a random walk.
B)the stock market is informationally efficient.
C)it is better to own stock in 20 companies than it is to own stock in 2 companies.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Ron likely believes all of the above: stock prices follow a random walk, the market is informationally efficient, and diversification is beneficial.

Ron Decides Which Stocks to Purchase by Throwing Darts at the Stock