A Random Walk Has Each of the Following Properties EXCEPT

question 45

Multiple Choice

A random walk has each of the following properties EXCEPT

• A) a constant variance
• B) a positive mean
• C) equally likely to rise or fall
• D) independence over time
• E) All of the above are properties of a random walk

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Definitions:

Trading Securities

Financial securities that a company holds primarily for the purpose of trading them in the short term for profit from their price changes.

Passive Investment

An investment strategy involving minimal buying and selling actions, focusing instead on long-term holding and typically relying on market-wide growth.

Voting Shares

Shares that give the shareholder the right to vote on company matters.

GAAP

Generally Accepted Accounting Principles, a framework of accounting standards, principles, and procedures.