If the Price of a Stock Falls on 4 Consecutive

question 49

Multiple Choice

If the price of a stock falls on 4 consecutive days of trading,then stock prices:

• A) cannot be following a random walk.
• B) can still be following a random walk.
• C) are almost certain to increase the following day.
• D) are almost certain to decrease the following day.

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Definitions:

Plant Assets

Tangible assets used in the operation and production areas of a manufacturing company that have a useful life longer than one year.

Disposed

This refers to the act of getting rid of something, often used in the context of assets that have been sold or removed from the books.

Discarding

The process of getting rid of something no longer useful or required, often in the context of inventory or asset management.

Revenue Expenditures

Costs that are expensed in the current period and not capitalized; they are for maintaining the earning capacity of existing assets rather than for new assets.