The Random Walk Hypothesis

question 5

Multiple Choice

The random walk hypothesis

• A) has been disproved based on recent computer simulations.
• B) supports the notion that random price movements are indicative of inefficient markets.
• C) implies that security analysis is unable to predict future market behaviour.
• D) suggests that random patterns appear but only over long periods of time.

---

Definitions:

Implicit Association Test

A psychological tool used to measure unconscious biases by assessing the strength of associations between concepts (e.g., black or white, gay or straight) and evaluations (e.g., good or bad).

Personality Traits

Enduring personal qualities or characteristics that influence an individual's behavior, thoughts, and feelings across various situations.

Self-esteem

The subjective assessment of one's own worth or value.

Narcissism

A personality trait characterized by excessive self-love or self-centeredness.