If Stock Prices Follow a Random Walk,it Means

question 50

Multiple Choice

If stock prices follow a random walk,it means

• A)long periods of declining prices are followed by long periods of rising prices.
• B)the greater the number of consecutive days of price declines,the greater the probability prices will increase the following day.
• C)stock prices are unrelated to random events that shock the economy.
• D)stock prices are just as likely to rise as to fall at any given time.

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Definitions:

Escapers

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Survival Curve

A curve on a graph showing the percentage of people or animals alive at various ages.

Mortality Rates

The measure of the number of deaths in a particular population, scaled to the size of that population, per unit of time.