Question

Stock prices that are stable over time _______.

A. indicate that prices are useful indicators of true economic valueB. indicate that the market is not incorporating new information into current stock pricesC. ensure that an economy allocates its resources efficientlyD. indicates that returns follow a random walk process

Answer 1

Answer: Stock prices that are stable over time B. indicate that the market is not incorporating new information into current stock prices.

Explanation: Stock prices typically fluctuate overtime, if they are staying the same, the market is not putting anything into plan that allows for the fluctuating of the prices to change. When there is no fluctuation, no one is losing money however, they aren't going to earn money on their investments either.