One of the Theories on the Determination Of,and Change in the Value

question 65

Multiple Choice

One of the theories on the determination of,and change in the value of,shares and other securities is the random walk hypothesis.Which of the following statements in relation to the random walk hypothesis is correct?

• A) The trend of new information into the market may be consistently good or consistently bad over time.
• B) If the price of a share rose in one period, there is a higher probability that it will rise again in the next period.
• C) Share price reflects the share's intrinsic value, based on the latest information set relevant to current and future prospects.
• D) The history of previous price movements contains valuable information on likely future price movements.

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Definitions:

Branded House

A branding strategy where a company uses one overarching brand across all its products and services, emphasizing the main brand's values over individual product identities.

House Of Brands

A branding strategy where a company markets multiple separate brands under one corporate umbrella, with each brand functioning independently.

House Of Brands

A branding strategy where a company markets a range of separate brands, each catering to specific market segments.

Branded House

A branding strategy where a company's sub-brands are closely connected to the parent brand’s identity and values.