The Random Walk Theory Implies That Stock Prices

question 254

Multiple Choice

The random walk theory implies that stock prices

• A) go down, then up, and then down again.
• B) follow systematic trends.
• C) can be forecast accurately by experts who are knowledgeable about how the stock market works.
• D) will change as the result of unexpected factors that are virtually impossible to forecast accurately.

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Definitions:

Union Boycotts

Actions taken by labor unions to refuse to buy, sell or handle products from a company to protest against its policies or to demand better working conditions.

American Federation of Labor

A national federation of labor unions in the United States, founded in 1886, that aimed to represent the interests of skilled workers and push for better wages, working conditions, and labor laws.

Unskilled Workers

Laborers who do not have specialized training or skills, often employed in basic tasks in various industries.

Africans-Americans

Individuals in the United States who have ancestry tracing back to the black racial groups of Africa.