Since Stock Prices Will Shift in Response to Unpredictable Future

question 16

Multiple Choice

Since stock prices will shift in response to unpredictable future news, these prices will tend to follow what mathematicians call _________________.

• A) a random walk with a trend
• B) momentum trading
• C) long-term fundamental value
• D) unpredictable changes in expectations

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Definitions:

Psychodynamic

A psychological perspective that analyzes how behavior springs from unconscious drives and conflicts, often focusing on the dynamic interactions within the psyche.

Psychodynamic Therapy

A therapeutic approach focusing on conscious and unconscious processes to explore emotional distress.

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