Which of the Following Is True

question 48

Multiple Choice

Which of the following is true?

• A) A random walk for stock price changes is inconsistent with observed patterns in price changes.
• B) If the stock market follows a random walk, price changes should be highly correlated.
• C) If the stock market is weak form efficient, then stock prices follow a random walk.
• D) All of these.
• E) Both If the stock market follows a random walk, price changes should be highly correlated; and If the stock market is weak form efficient, then stock prices follow a random walk.

---

Definitions:

Overdue Debts

Financial obligations that have not been paid by the deadline.

Dismiss the Petition

A court's act of rejecting a legal petition or request, preventing it from being considered or further pursued.

Reorganization

A process aimed at restructuring a company's operations, finances, or structure to improve efficiency and profitability, often in the context of bankruptcy.

Liquidation

The process of converting assets into cash or cash equivalents, often in the context of winding up a company.