Random price movements indicate ________.

A) irrational markets
B) that prices cannot equal fundamental values
C) that technical analysis to uncover trends can be quite useful
D) that markets are functioning efficiently

Question

Elissa Goldberg · Accepted Answer

Final Answer : D, Explanation :  Random price movements suggest that markets are functioning efficiently, as prices reflect all available information and adjust quickly to new information, making it difficult to predict future movements based on past trends. This is a core idea of the Efficient Market Hypothesis.

Random price movements indicate ________.

A) irrational markets
B) that prices cannot equal fundamental values
C) that technical analysis to uncover trends can be quite useful
D) that markets are functioning efficiently

Definitions

Learning Objectives

Learning Objectives

Related questions

Random price movements indicate ________.A) irrational marketsB) that prices cannot equal fundamental valuesC) that technical analysis to uncover trends can be quite usefulD) that markets are functioning efficiently

Definitions

Learning Objectives

Learning Objectives

Related questions

Random price movements indicate ________.

A) irrational markets
B) that prices cannot equal fundamental values
C) that technical analysis to uncover trends can be quite useful
D) that markets are functioning efficiently