Which of the Following Statements Is Correct

question 15

Multiple Choice

Which of the following statements is correct?

• A) If the share market follows a random walk, price changes should be highly correlated.
• B) A random walk for share price changes is inconsistent with observed patterns in price changes.
• C) If the share market is weak-form efficient, the share prices follow a random walk
• D) All of the given answers are correct.

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Definitions:

Reinforcement

In behavioral psychology, a process in which a behavior is strengthened by the outcome that follows, whether it's positive (reward) or negative (removal of an undesirable stimulus).

Punishment

A consequence that decreases the likelihood of a behavior being repeated.

Increase

A rise or growth in quantity, size, strength, or another measurable factor.

Physical Discipline

refers to the use of physical force with the intention of correcting or controlling a person's behavior, often debated for its effects on long-term psychological well-being.