The Random Walk Hypothesis Suggests That

question 3

Multiple Choice

The random walk hypothesis suggests that

• A)the best predictor of the future exchange rate is the current exchange rate.
• B)the best predictor of the future exchange rate is the current forward rate.
• C)both a and b are consistent with the efficient market hypothesis.
• D)None of the above

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Definitions:

Peroxisome

Membrane-bounded body similar to a lysosome in appearance but often smaller and irregular in shape; contains enzymes that either decompose or synthesize hydrogen peroxide.

Rough ER

A part of the endoplasmic reticulum with ribosomes attached to its surface, involved in protein synthesis.

Lysosomes

Organelles in cells that contain enzymes for digesting cellular waste material and foreign substances.

Proteosomes

Proteosomes are large protein complexes within cells that degrade and recycle damaged or unneeded proteins, critical for cellular regulation and function.