If Share Prices Follow a Random Walk Then Investors Can

question 56

Multiple Choice

If share prices follow a random walk then investors can make large profits illegally by

• A) using computer programs that perform technical analysis using past share price trends.
• B) performing fundamental analysis of shares using data contained in annual reports.
• C) quickly responding to rumours of mergers between companies.
• D) using insider information.

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Definitions:

Universities

Higher education institutions that offer undergraduate and postgraduate degrees in various fields of study, usually involving research, teaching, and administrative services.

Stress-Buster

Informal term referring to any activity, technique, or intervention designed to reduce or alleviate stress.

General Adaptation Syndrome

A model describing the body's response to stress in three stages: alarm, resistance, and exhaustion.

Stage

A specific phase or period in a process or lifetime during which distinct patterns of behavior or developmental milestones are observed.