The Statement That Stock Prices Follow a Random Walk Implies

question 32

Multiple Choice

The statement that stock prices follow a random walk implies that:
I. Successive price changes are independent of each other
II. Successive price changes are positively related
III. Successive price changes are negatively related
IV. The autocorrelation coefficient is either +1 or -1

• A) I only
• B) II and III only
• C) IV only
• D) III only

---

Definitions:

Neural Tube Defects

Birth defects of the brain, spine, or spinal cord occurring when the neural tube does not close completely.

Anemia

A medical condition characterized by a deficiency in the number or quality of red blood cells, which impairs oxygen transport in the body.

Folate

A B-vitamin essential for red blood cell formation and for healthy cell growth and function.

Vitamin E

A group of eight fat-soluble compounds that include tocopherols and tocotrienols, which act as antioxidants protecting cells from damage.