Security Prices Are Said to Follow a "Random Walk," Which

question 85

Multiple Choice

Security prices are said to follow a "random walk," which means that:

• A)stock selection for portfolio composition is unimportant.
• B)it is impossible to know whether stocks offer higher returns than bonds.
• C)investment analysts are unnecessary.
• D)successive price changes are unpredictable.

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Definitions:

Hydrochloric Acid

A strong, corrosive acid consisting of hydrogen and chlorine (HCl), widely used in industry and research for various applications, including metal cleaning and pH adjustment.

Lucas Reagent

A chemical reagent used to classify alcohols of low molecular weight based on their reactivity, comprising zinc chloride in concentrated hydrochloric acid.

Alcohol

Alcohol refers to a group of organic compounds characterized by the presence of one or more hydroxyl (-OH) groups attached to a carbon atom.

Rapidly

Quickly or in a short time period.