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.

---

Definitions:

Bioaccumulation

The process by which certain substances, such as pesticides or heavy metals, increase in concentration in the bodies of organisms over time, often leading to toxicity.

Hormone Disrupter

Chemicals that interfere with the endocrine system, potentially causing developmental, reproductive, neurological, and immune disorders in both humans and wildlife.

Tertiary Consumer

Organisms that occupy the fourth trophic level in a food chain, feeding on secondary consumers; often top predators.

Primary Consumer

Organisms that directly consume producers (plants) in the food chain, obtaining energy from photosynthesis.