Which of the Following Is an Implication of the Random

question 110

Multiple Choice

Which of the following is an implication of the random walk theory?

• A) Experts will be able to make money by picking and choosing the best stocks.
• B) There is a systematic pattern to the movement of prices in the stock market.
• C) Stock market investors can expect to earn a fairly steady real rate of return of about 7 percent annually.
• D) Even experts will be unable to predict the future movement of stock prices with any degree of accuracy.

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Definitions:

False Excuse

A fabricated or insubstantial reason given to justify an action or decision.

Regression

A defense mechanism leading an individual to revert to an earlier stage of development in the face of unacceptable thoughts or impulses.

Stress

The body's response to any demand or challenge, which can be caused by both positive and negative experiences and can affect mental and physical health.

Immaturity

A state or condition of not being fully developed or lacking the emotional or intellectual development appropriate for one's age.