Some People Claim That Stocks Follow a Random Walk

question 28

Multiple Choice

Some people claim that stocks follow a random walk.What does this mean?

• A)The price of stock one day is about what it was on the previous day.
• B)Changes in stock prices cannot be predicted from available information.
• C)Stock prices are not determined by market fundamentals such as supply and demand.
• D)Prices of stocks of different firms in the same industry show no or little tendency to move together.

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Definitions:

FAFSA

The Free Application for Federal Student Aid, a form used by students in the United States to apply for financial aid for college or graduate school.

Veteran

A person who has served in the military, especially one who has served in combat.

Valuable Work Experience

Professional or job-related experiences that contribute significantly to an individual's skillset, making them more marketable and knowledgeable.

Educational Goals

Objectives related to gaining knowledge, skills, and qualifications through formal schooling or training.