[amp_mcq option1=”weak-form EMH” option2=”semi strong-form EMH” option3=”semi weak-form EMH” option4=”strong-form EMH” correct=”option1″]<\/p>\n
The correct answer is: A. weak-form EMH.<\/p>\n
The random walk hypothesis is a theory that stock prices move randomly and cannot be predicted. This is in contrast to the efficient-market hypothesis (EMH), which states that stock prices reflect all available information and cannot be systematically beaten by investors.<\/p>\n
The weak-form EMH is a subset of the EMH that states that past prices cannot be used to predict future prices. This is because all past information is already reflected in current prices.<\/p>\n
The random walk hypothesis is most closely related to the weak-form EMH because it states that stock prices move randomly and cannot be predicted using past prices.<\/p>\n
The semi-strong form EMH states that current prices reflect all publicly available information. This means that investors cannot use publicly available information to earn excess returns.<\/p>\n
The strong-form EMH states that current prices reflect all information, both public and private. This means that even investors with access to private information cannot earn excess returns.<\/p>\n
I hope this helps! Let me know if you have any other questions.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”weak-form EMH” option2=”semi strong-form EMH” option3=”semi weak-form EMH” option4=”strong-form EMH” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-56996","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n