If Stock Prices Follow a Random Walk

question 11

Multiple Choice

If stock prices follow a random walk,

• A)it implies that investors are irrational.
• B)it means that the market cannot be efficient.
• C)price levels are not random.
• D)price changes are random.

Calculate net proceeds from stock sales considering brokerage fees and trading costs.

Understand the concept of fractional shares and how they are handled in transactions.

Assess stock market indicators such as capital gains, dividends, and yield to make informed investment decisions.

Understand the basic concepts of geologic time and the geologic timescale.

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Definitions:

Progress

The forward or onward movement towards achieving a goal or improving conditions.

Labour Expenses

Expenses related to employee compensation, such as paychecks, bonuses, benefits, and tax contributions.

Labour Force

The total number of people aged 16 and over who are either employed or actively seeking employment.

Technology

The application of scientific knowledge for practical purposes, especially in industry and improvements in tools, machines, techniques, systems, and methods of organization.