One Implication of the Random Walk Hypothesis Is

question 63

Multiple Choice

One implication of the random walk hypothesis is

• A)given the efficiency of foreign exchange markets, it is difficult to outperform the market-based forecasts unless the forecaster has access to private information that is not yet reflected in the current exchange rate.
• B)given the efficiency of foreign exchange markets, it is difficult to outperform the market-based forecasts unless the forecaster has access to private information that is already reflected in the current exchange rate.
• C)given the relative inefficiency of foreign exchange markets, it is difficult to outperform the technical forecasts unless the forecaster has access to private information that is not yet reflected in the current futures exchange rate.
• D)none of the above

---

Definitions:

Amygdala

The amygdala is a section of the brain that is responsible for detecting fear and preparing for emergency events.

Emotion-Related Information

Data or stimuli that are specifically related to feelings or affective states, which can influence perception, decision-making, and behavior.

Polygraph Tests

A forensic tool designed to detect physiological signs of lying or truthfulness through measures of bodily responses.

Electrical Resistance

A measure of the difficulty encountered by an electric current as it flows through a conductor.