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:

AASB 112

Australian Accounting Standard Board statement number 112, concerning income taxes, requiring entities to account for taxes based on the concept of comprehensive tax balance sheets.

Deferred Tax Asset

An accounting term used for tax overpayments or advance payments, which will get adjusted against future tax liabilities.

Tax Base

The total amount of assets or income that can be taxed by a government, determining the extent of tax revenue.