If the Price of a Stock Falls on 4 Consecutive

question 49

Multiple Choice

If the price of a stock falls on 4 consecutive days of trading,then stock prices:

• A) cannot be following a random walk.
• B) can still be following a random walk.
• C) are almost certain to increase the following day.
• D) are almost certain to decrease the following day.

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Definitions:

Long-Term Memory

Long-Term Memory is a type of memory storage capable of holding information for extended periods, from days to decades, and includes both declarative and procedural memories.

Mnemonic Technique

A memory-enhancing strategy that involves associating new information with well-known items, phrases, or images to facilitate recall.

Elaborative Rehearsal

A method of memory consolidation that involves thinking about the meaning of the term to be remembered, rather than simply repeating the word to oneself.

Serial Position Effect

A phenomenon of memory that states people tend to remember the first and last items in a series best, and the middle items worst.