If Stock Prices Follow a Random Walk, It Means That

question 252

Multiple Choice

If stock prices follow a random walk, it means that stock prices are:

• A) unpredictable.
• B) increasing.
• C) decreasing
• D) constant.

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Definitions:

Probability

The quantification of the chances that a specific event will take place.

Disjunction

A logical operation that yields truth if at least one of its operands is true; often represented by the word "or".

Negation

The logical operation that inverts the truth value of a statement or proposition.

Rain

Precipitation in the form of water droplets that falls from clouds in the atmosphere to the earth's surface.