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.

Understand the significance of financial ratios in evaluating a company's performance.

Identify key financial ratios including price-earnings ratio and dividend yield.

Describe different ways financial ratios can be expressed.

Understand the importance and implications of professional communication practices within digital environments, including texting, instant messaging, and emailing.

---

Definitions:

SWOT Analysis

A strategic planning tool used to identify and assess the Strengths, Weaknesses, Opportunities, and Threats related to a project, organization, or business venture.

Starbucks

A multinational chain of coffeehouses and roastery reserves known for its signature coffee drinks, teas, and baked goods.