If Stock Prices Follow a Random Walk,it Means

question 50

Multiple Choice

If stock prices follow a random walk,it means

• A)long periods of declining prices are followed by long periods of rising prices.
• B)the greater the number of consecutive days of price declines,the greater the probability prices will increase the following day.
• C)stock prices are unrelated to random events that shock the economy.
• D)stock prices are just as likely to rise as to fall at any given time.

---

Definitions:

Invested Assets

Refers to resources allocated by individuals or entities into various types of investment vehicles aiming for future returns.

Service Department

An organizational unit that provides support and services to other units within the organization, rather than producing goods or services for external customers.

Internal Service Departments

Departments within an organization that provide essential services to other departments rather than external customers, such as IT support or human resources.

Inventory Control

The processes and procedures used to manage the ordering, storage, and use of components that a company will use in the production process or the management of stock available for sale.