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

question 55

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 A and B
• D)Neither A nor B

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Definitions:

Conflict Theorists

Scholars who focus on social, political, or material inequalities of a social group, analyzing the broad socio-political system.

Exchange Theorists

Social scientists who study human interactions and relationships through the lens of costs and benefits, theorizing that individuals seek to maximize rewards and minimize costs in social exchanges.

Ecological Perspective

An approach in various disciplines that considers organisms, including humans, in relation to their environments.

Mesosystem

a concept in ecological systems theory referring to the interactions between different microsystems or immediate environments in a person's life, such as home, school, and workplace.