Under the Concept of an Efficient Market a Random Walk

question 40

Multiple Choice

Under the concept of an efficient market a random walk in stock prices means that:

• A) there is no driving force behind price changes.
• B) technical analysts can predict future price movements to earn excess returns.
• C) the unexplained portion of price change in one period is unrelated to the unexplained portion of price change in any other period.
• D) the unexplained portion of price change in one period that cannot be explained by expected return, can only be explained by the unexplained portion of price change in a prior period.

---

Definitions:

Fear Of Rejection

An intense and pervasive apprehension of being excluded or dismissed by others.

Speed-Dating Gathering

A social event where individuals have brief conversations with potential romantic partners in order to determine mutual interest.

Biopsychosocial Approach

A method that examines psychological disorders by considering biological, psychological, and social factors.

Personal Frustration

The feeling of dissatisfaction or annoyance resulting from unmet expectations or obstacles to achieving goals.