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.

---

Definitions:

Physical Medium

Any material substance used to store or transfer information or data, such as a hard drive, CD, DVD, or paper.

Hard Copy

A physical printout of a document, photo, or file, as opposed to a digital version, providing a tangible means to review, share, or archive the content.

Electronic Image

A digital representation of a visual image, such as a photo or diagram, stored in an electronic format.

Fixed Format

A file or document format where data is stored in a predetermined and consistent layout, often used for data interchange and preservation.