Business, 16.03.2020 20:17, bryanna0105
Suppose that one of your classmates informs you that he has developed a method of forecasting stock market returns based on past trends. With a monetary investment by you, he claims that the two of you could profit handsomely from this forecasting method. Your classmate is:
A. right since stock prices tend to drift upward following a definite rule of thumb which can be used to "get rich quickly."
B. wrong since there are no predictable trends that can be used to "get rich quickly;" stock prices go up following a "random walk."
C. trying to cheat you out of your money.
D. right because the stock market can usually be predicted 98% of the time.
Answers: 3
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