If Share Prices Appear to Follow a Random Walk

question 23

Multiple Choice

If share prices appear to follow a random walk:

• A) selecting shares for portfolios is irrelevant.
• B) investment analysts are unimportant.
• C) successive share price changes are unpredictable.
• D) it is impossible to know when to buy shares.

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Definitions:

Social Marketing

The application of marketing principles to a social issue to bring about attitudinal and behavioral change among the general public or a specific population segment.

Self-actualization

The actualization of one's abilities and potential, seen as an innate motivation or requirement in every person.

Brand-loyal

Refers to consumers who consistently purchase the same brand over alternatives due to preference, satisfaction, or perceived value.

Price-sensitive

Describes consumers or markets that are highly responsive to changes in prices, where demand significantly fluctuates with price adjustments.