A Random Walk Occurs When an Asset Price

question 10

Multiple Choice

A random walk occurs when an asset price:

• A) moves in a predicable direction but with random error.
• B) makes unpredictable movements.
• C) moves in a predictable way with no error.
• D) moves slowly but predictably.

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Definitions:

Income

The money received, especially on a regular basis, for work, through investments, or other sources.

Ipads

A line of tablet computers designed, developed, and marketed by Apple Inc., known for their touch screen interface and wide range of applications.

Quantity Demanded

The specific amount of a product consumers desire to buy at a particular price point, illustrating the relationship between price and demand.

Law of Supply

An economic principle stating that as the price of a good increases, suppliers will produce more of it, and as the price decreases, they will produce less.