Home→ Economics Mcqs → Risks And Diversification & Efficient Market Hypothesis →Share prices will follow a random walk if ?

Speculative bubbles may occur in the shares market ?
Which of the following reduces risk in a portfolio the greatest ?
The study of a company’s accounting statements and future prospects to determine its value is known as ?
Diversification of portfolio can ?
Which of the following is an example of moral hazard ?
If people are risk averse, then ?
An increase in the prevailing interest rate ?
If a depositor puts Rs100 in a bank amount that earns 4 percent interest compounded annually, how much will be in the account after five years ?
It is difficult for an actively managed investment fund to outperform an index fund because ?
Which of the following should cause the price of a share of stock to rise ?
If the efficient markets hypothesis is true, then ?
Compared to a portfolio composed entirely of shares a portfolio that is 50 percent government bonds and 50 percent shares will have a ?
Idiosyncratic risk is the ?
Which of the following does not help reduce the risk that people face ?
If two countries start with the same real GDP/person and one country grows at 2 percent while the other grows at 4 percent ?
JCB (Which makes agricultural and construction equipment) has the opportunity to purchase a new factory today that will provide them with a Rs50 million return four years from now If prevailing interest rates are 6 percent, what is the maximum that the project can cost for JCB to be willing to undertake the project ?
The amount today that would be needed, at prevailing interest rates, to produce a particular sum in the future is known as ?

Share prices will follow a random walk if ?

A. shares are overvalued
B. people behave irrationally when choosing shares
C. markets reflect all available information in a rational way
D. shares are undervalued

Correct Answer: markets reflect all available information in a rational way ✔

Last Updated: June 18, 2019