To Say That Stock Prices Follow a "Random Walk" Is

question 26

Multiple Choice

To say that stock prices follow a "random walk" is to argue that stock prices

• A)rise,then fall,then rise again.
• B)rise,then fall in a predictable fashion.
• C)tend to follow trends.
• D)cannot be predicted based on past trends.

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Definitions:

Scientific Study

The systematic investigation of scientific theories and hypotheses through controlled experiments, observation, and analysis to acquire knowledge and insights.

Unconscious

A part of the mind that is not accessible to conscious thought but that influences judgments, feelings, or behavior.

Behaviour

The actions or reactions of individuals or groups in response to external or internal stimuli.

Brain

The organ in the head of animals and humans, responsible for nerve function, thought, memory, and processing sensory information.