Correct question: A person who believes strongly in the use of fundamental analysis to choose a portfolio of stocks
A. has a better chance of outperforming the market if stock prices follow a random walk than if they do not follow a random walk.
B. almost always chooses to hold index funds in his or her portfolio rather than actively-managed funds.
C. is interested in the likely ability of a corporation to pay dividends in the future.
D. is spending his or her time wisely if the efficient markets hypothesis is correct.
Answer:
C, is interested in tthe likely ability of the corporation to pay dividends in future.
Explanation:
Fundamental analysis is the evaluation of the value of an asset and its future price as a result of some factors.
Fundamental analysis is used to determine the value of a stock based on its ability to dividends, expected final sale and the ability of the corporation to pay dividends.
In simple term, fundamental analysis is the analysis of a stock to know if it will yield profits (dividends) or not and this in turns help to decide whether to buy up such stock or otherwise.
I hope this helps.
