If Stock Prices Follow a Random Walk,then Stock Investors Can

question 19

Multiple Choice

If stock prices follow a random walk,then stock investors can make large profits by

• A)buying stocks whose prices have been falling for several days.
• B)buying stocks whose prices have been rising for several days.
• C)performing fundamental analysis of stocks using data contained in annual reports.
• D)using inside information.

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Definitions:

Phthalates

A group of chemicals used to make plastics more flexible and harder to break, often found in various consumer products.

PCBs

Polychlorinated biphenyls, a group of man-made organic chemicals known for their environmental persistence and potential health hazards.

Excess Glucose

A quantity of glucose in the body that surpasses the normal usage and storage levels.