Which of the Following Is True

question 1

Multiple Choice

Which of the following is true?

• A)A random walk for stock price changes is inconsistent with observed patterns in price changes.
• B)If the stock market follows a random walk, price changes should be highly correlated.
• C)If the stock market is weak form efficient, then stock prices follow a random walk.
• D)All of the above.
• E)Both B and C.

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Definitions:

Technical Design

The process of creating solutions to technical problems, including the drafting of blueprints, specifications, and the overall planning of systems or products.

Social Design

The practice of designing environments, products, and services with the intention to improve human interactions and society as a whole.

Social Dilemma

Situations in which personal interests are at odds with the collective good, challenging the harmony between individual actions and group welfare.

Commons Dilemma

A situation in which individuals’ short-term selfish interests are at odds with long-term group benefits, leading to potential resource depletion.