According to Random-Walk Theory,what Are the Odds That a Stock

question 67

Multiple Choice

According to random-walk theory,what are the odds that a stock will increase in price after having increased on 2 consecutive days of trading?

• A) 0.0%
• B) 12.5%
• C) 50.0%
• D) 100.0%

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Definitions:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision. It represents the benefits that could have been received but were given up to take another course of action.

Cash Balance

The amount of cash a company or individual has available at any given time, reflecting liquidity.

Average Daily Receipts

This metric calculates the average amount of money received by a company on a daily basis over a specific period.

Disbursement Float

The time delay between when a check is written and the actual withdrawal of funds from the account.