Which of the Following Is an Implication of the Random

question 110

Multiple Choice

Which of the following is an implication of the random walk theory?

• A) Experts will be able to make money by picking and choosing the best stocks.
• B) There is a systematic pattern to the movement of prices in the stock market.
• C) Stock market investors can expect to earn a fairly steady real rate of return of about 7 percent annually.
• D) Even experts will be unable to predict the future movement of stock prices with any degree of accuracy.

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Definitions:

Psychosomatic Medicine

A branch of medicine dealing with the interaction between psychological processes and physical disorders.

Behavioural Medicine

Application of the methods of behaviour modification to the treatment or prevention of disease—for example, the use of psychological techniques to control pain in patients undergoing medical procedures, or interventions to improve the diabetics’ ability to control their blood glucose.

Psychosocial Variables

Factors that involve both psychological and social aspects affecting an individual's behavior and thoughts.

Endocrine System

A network of glands in the body that produce and release hormones directly into the bloodstream, regulating various bodily functions and processes.