If Stock Prices Follow a Random Walk,it Means

question 50

Multiple Choice

If stock prices follow a random walk,it means

• A)long periods of declining prices are followed by long periods of rising prices.
• B)the greater the number of consecutive days of price declines,the greater the probability prices will increase the following day.
• C)stock prices are unrelated to random events that shock the economy.
• D)stock prices are just as likely to rise as to fall at any given time.

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Definitions:

Medial Malleolus

The bony prominence on the inner side of the ankle, formed by the lower end of the tibia.

Tibia

The larger and stronger of the two bones in the lower leg, commonly referred to as the shinbone.

Fibula

A thin, elongated bone situated on the outer aspect of the tibia, within the lower portion of the leg.

Clavicle

A long bone that serves as a strut between the shoulder blade and the sternum or breastbone, also known as the collarbone.