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:

Accumulated Amount

The total amount accumulated over time, considering various factors like initial principal and compound interest.

Compounded Monthly

The process of adding interest to the principal sum of a deposit or loan on a monthly basis, leading to interest earning interest.

Intercompany Loan

A loan made from one business entity to another within the same organization, often used for internal financing purposes.

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company.