Followers of the Random Walk Hypothesis Believe That

question 82

Multiple Choice

Followers of the random walk hypothesis believe that

• A) support levels and resistance lines, when combined with basic chart formations, yield both buy and sell signals.
• B) the price movements of shares follow a "flag" formation such that charting prices can help an investor better time his or her security purchases.
• C) the price movements of shares are unpredictable, and therefore security analysis will not help to predict future market behaviour.
• D) security analysis is the best tool to utilise when investing in the share market.

---

Definitions:

Industry Affecting Commerce

Refers to how the operations, innovations, or issues within a specific industry can impact the broader commerce sector, often influencing economic activity and regulation.

Title VII

A provision of the Civil Rights Act of 1964 that prohibits employers from discriminating against employees on the basis of sex, race, color, national origin, and religion.

Civil Rights Act

A significant United States law that prohibits discrimination on the basis of race, color, religion, gender, or nationality.

Mormon

A member of The Church of Jesus Christ of Latter-day Saints, a religious group founded in the United States in the early 19th century.