If You Believe That Stock Prices Follow a Random Walk,then

question 10

Multiple Choice

If you believe that stock prices follow a random walk,then probably you

• A)do not believe that there is positive relationship between risk and return.
• B)do not believe that stock prices reflect all available information.
• C)believe in the validity of the efficient markets hypothesis.
• D)believe that it is a good idea to engage in fundamental analysis.

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Definitions:

Marcus Spiegel

A Union officer during the American Civil War known for his letters detailing his experiences and viewpoints throughout the conflict.

German Immigrant

An individual who has relocated from Germany to another country, often contributing to the socio-economic and cultural fabric of the new community.

Civil War

A war between citizens of the same country. In the United States, it refers to the conflict from 1861 to 1865 over issues including states' rights and slavery.

Abolish Slavery

The act of formally ending the practice of enslaving people, as achieved in the United States through the 13th Amendment in 1865.