The Difference Between a Random Walk and a Submartingale Is

question 17

Multiple Choice

The difference between a random walk and a submartingale is the expected price change in a random walk is ______, and the expected price change for a submartingale is ______.

• A) positive; zero
• B) positive; positive
• C) positive; negative
• D) zero; positive
• E) zero; zero

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Definitions:

One Charge

Typically refers to a single financial cost or fee for a service or product.

Credit Bureau

A company that provides information about the creditworthiness of a person seeking credit.

Creditworthiness

A valuation or assessment of an individual's or organization's ability to repay debts or meet financial obligations.

Equal Credit Opportunity Act

A US federal law that prohibits discrimination by lenders against borrowers based on race, color, religion, national origin, sex, marital status, or age.