The Random Walk Hypothesis

question 67

Multiple Choice

The random walk hypothesis

• A) implies that security analysis is unable to predict future market behavior.
• B) suggests that random patterns appear but only over long periods of time.
• C) has been disproved based on recent computer simulations.
• D) supports the notion that random price movements are indicative of inefficient markets.

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Definitions:

Frame

Groups of data packets that are sent together in a package.

Access Method

A method to control which computer is allowed to use transmission media at a certain time.

Ring Networks

A network topology where each node is connected to exactly two other nodes, forming a single continuous pathway for signals through each node - a ring.

Data Collisions

Occurrences in network communications where two devices attempt to send information over a network channel at the same time, resulting in a loss of data.