6. Market efficiency (S12.2) Respond to the following comments: a. The random-walk theory, with its implication that
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6. Market efficiency (S12.2) Respond to the following comments:
a. “The random-walk theory, with its implication that investing in stocks is like playing roulette, is a powerful indictment of our capital markets.”
b. “If everyone believes you can make money by charting stock prices, then price changes won’t be random.”
c. “The random-walk theory implies that events are random, but many events are not random.
If it rains today, there’s a fair bet that it will rain again tomorrow.”
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Related Book For
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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