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

question 105

Multiple Choice

The concept of "random walk" applies most closely to forecasts 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:

Network Solutions

A company or service that provides internet hosting, domain registration, and other online services necessary for establishing and maintaining a web presence.

Franchise Agreement

A legal contract whereby a franchisor allows a franchisee to use its business model and brand for a specified period in exchange for a fee.

Franchisee

An individual or company that has obtained the rights to use a brand's name, products, and processes to sell goods or services.

Direct Investment

The purchase of a substantial stake in a foreign company or the establishment of business operations in a foreign country, such as a factory or other facility.