Share Prices Will Follow a Random Walk If

question 11

Multiple Choice

Share prices will follow a random walk if

• A) shares are overvalued.
• B) people behave irrationally when choosing shares.
• C) markets reflect all available information in a rational way.
• D) shares are undervalued.

---

Definitions:

Actual Cost Driver

A factor that directly impacts the expenses associated with a specific activity, determining the actual costs incurred.

Budgeted Overheads

The estimated costs for overhead (indirect costs such as utilities, rent, and administrative salaries) that are planned or budgeted for a specific time period.

Wage Payable

The amount of salary or wages that a company owes to its employees at the end of a financial period but has not yet paid.

Manufacturing Overhead

Indirect costs related to manufacturing that cannot be directly traced to specific products, such as factory rent, utilities, and equipment maintenance.