Based on the Random Walk Theory,if a Stock's Price Decreased

question 101

Multiple Choice

Based on the random walk theory,if a stock's price decreased last week,then this week the price:

• A) will reverse last week's loss and go up.
• B) will continue last week's decline.
• C) will stand still until new information is released.
• D) has an equal chance of going either up or down.

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Definitions:

Market Power

The ability of a firm or group of firms to influence or control prices and total market output.

Restrict Advertising

The imposition of limitations on the timing, nature, or content of commercial advertising.

Economic Incentives

Motivations or rewards intended to encourage particular economic behaviors among individuals or organizations.

Effectiveness

The extent to which an action achieves its anticipated or targeted outcome.