Based on the Random Walk Theory,if a Stock's Price Decreased

question 101

Multiple Choice

Based on the random walk theory,if a stock's price decreased last week,then this week the price:

• A) will reverse last week's loss and go up.
• B) will continue last week's decline.
• C) will stand still until new information is released.
• D) has an equal chance of going either up or down.

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Definitions:

Discount

A discount represents a reduction from the full price or value of goods, services, financial instruments, or the present value of future cash flows.

Safety Stock

Safety stock is additional inventory held to prevent stockouts due to uncertainties in demand or supply.

Inventory Level

The quantity of goods and materials on hand in a business' inventory at any given time.

Lead Time

The period between the initiation of a process and its completion, especially in manufacturing or project planning.