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.

---

Definitions:

Theoretical Perspective

A viewpoint or set of assumptions that shapes how one understands, interprets, and analyses phenomena.

Martha Rogers

An influential nurse theorist known for her "Science of Unitary Human Beings."

Partnering

Creating and maintaining a cooperative and collaborative relationship or arrangement between individuals or entities with the aim of achieving a specific goal or undertaking.

Healing

The process of restoration to health from an unbalanced, diseased, or damaged state.