The Statement That Stock Prices Follow a Random Walk Implies

question 45

Multiple Choice

The statement that stock prices follow a random walk implies that
I.the correlation coefficient between successive price changes (auto correlation) is not significantly different from zero;
II.successive price changes are positively related;
III.successive price changes are negatively related;
IV.the autocorrelation coefficient is positive

• A)I only
• B)II only
• C)II and III only
• D)IV only

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Definitions:

Aka

An abbreviation commonly meaning "also known as," used to introduce aliases, nicknames, or alternative names.

Gender

The range of characteristics pertaining to, and differentiating between, masculinity and femininity, often based on social and cultural factors rather than biological ones.

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The capacity for sexual feelings, a person's sexual orientation or preference, and the expression of sexual interest or activity.

Male

Refers to the biological sex that is typically characterized by the XY chromosome pair and is associated with physiological and anatomical traits.