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:

Education And Intelligence

The interplay between the acquisition of formal knowledge, skills through schooling, and the innate or developed ability to understand, reason, and solve problems.

Psychological Reactance

A psychological response which occurs when individuals perceive their freedoms or choices are being limited, prompting them to reclaim or reassert lost freedoms.

Individualistic Cultures

Cultures that emphasize personal achievements and rights, prioritizing individual goals over group goals.

Reactance

A psychological reaction that occurs when individuals feel their freedom to choose or act is being restricted, leading them to resist the restriction or do the opposite of what is being sought.