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:

Due Process Clause

A constitutional guarantee providing fair treatment through the normal judicial system, especially as a citizen's entitlement.

Fourteenth Amendment

An amendment to the United States Constitution that grants citizenship to all persons born or naturalized in the USA, including former slaves, and guarantees all citizens equal protection of the laws.

Same Sex Marriages

Legal unions between two individuals of the same gender, recognized by law in some jurisdictions.

Procedural Due Process

A legal principle requiring government actions against individuals to follow fair procedures to protect rights.