Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 27 - Part IX - The Basic Tools of Finance - Quick Check Multiple Choice - Page 582: 6

Answer

a. changes in stock prices are impossible to predict from public information.

Work Step by Step

The efficient markets hypothesis states that stock prices reflect all publicly available information. Information changes will change a stock price, but the hypothesis declares that these are unpredictable.
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