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.

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Definitions:

Black Laborers

Refers to African American workers, historically significant in the context of slavery, segregation, and the civil rights movement, as well as their roles in the development of the U.S. economy.

Augusta Savage

An influential African American sculptor associated with the Harlem Renaissance who worked for equal rights for African Americans in the arts.

Gamin

A street urchin; often portrayed in art and literature as a mischievous or neglected child.

Paul Robeson

An African American singer, actor, and civil rights activist known for his bass baritone voice and performances in Othello and Show Boat in the early to mid-20th century.