The Concept of "Random Walk" Applies Most Closely to Predictions

question 158

Multiple Choice

The concept of "random walk" applies most closely to predictions of

• A)consumer demand for a product after a price increase.
• B)the effects of a tax on the supply of oil.
• C)the effects of transfer payments on labor supply.
• D)the price of a particular stock one year from now.

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Definitions:

Investments

Assets acquired for the purpose of generating income or profit, including stocks, bonds, real estate, or other vehicles.

Total Dollar Amount

The complete or aggregate sum of money expressed in dollars, typically referring to a specific financial transaction or set of transactions.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue.

Retained Use

The continued use of an asset by its owner instead of selling or replacing it.