To Say That Stock Prices Follow a "Random Walk" Is

question 34

Multiple Choice

To say that stock prices follow a "random walk" is to argue that

• A) stock prices rise, then fall, then rise again.
• B) stock prices rise, then fall in a predictable fashion.
• C) stock prices tend to follow trends.
• D) stock prices cannot be predicted based on past trends.

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Definitions:

Inventory Profits

The increase in inventory value above its cost, typically due to price increases or valuation adjustments.

Direct Disposal Costs

Expenses specifically associated with the removal or disposal of a fixed asset or waste materials from an organization.

Sales Commissions

Payments made to sales personnel based on the amount of sales they generate, often calculated as a percentage of the sale price.

Days' Sales In Inventory

Days' sales in inventory is a financial metric that indicates the average time it takes for a company's inventory to turn into sales, reflecting inventory management efficiency.