If Stock Prices Follow a Random Walk,which of the Following

question 13

Multiple Choice

If stock prices follow a random walk,which of the following statement(s) is(are) correct?

• A) successive stock price changes are not related
• B) the history of stock prices cannot be used to predict future returns to investors
• C) Both successive stock price changes are not related and the history of stock prices cannot be used to predict future returns to investors
• D) None of the choices are correct.

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Definitions:

Leader's Power

Refers to the capacity of a leader to influence the behavior of others or the course of events.

Traditional Managers

Managers who follow established and conventional management practices, focusing on hierarchy and organizational structures.

Visioning

Visioning refers to the process of creating a clear and compelling picture of the future state or goal that an organization or individual aims to achieve.

Douglas Conant

An American businessman known for his role as CEO of the Campbell Soup Company and for his innovative leadership practices.