Question

If the efficient markets hypothesis is correct, then Group of answer choices the number of shares of stock offered for sale exceeds the number of shares of stock that people want to buy. the stock market is informationally efficient. stock prices never follow a random walk. All of the above are correct.

Answer 1

Answer:

The correct answer is letter "B": the stock market is informationally efficient.

Explanation:

The Efficient Market Hypothesis (EMH) is an approach that states that there is no way investors can beat the market since stocks' current price portrait all the information available, thus, neither public or insiders' information could help entrepreneurs to outperform. The EMH makes fundamental and technical analyses seem useless while trying to predict future stock prices.

The EMH has three degrees which are the weak, semi-strong, and strong form of the EMH.