Which of the Following Is True

question 1

Multiple Choice

Which of the following is true?

• A)A random walk for stock price changes is inconsistent with observed patterns in price changes.
• B)If the stock market follows a random walk, price changes should be highly correlated.
• C)If the stock market is weak form efficient, then stock prices follow a random walk.
• D)All of the above.
• E)Both B and C.

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Definitions:

Operant Conditioning

A type of learning where behavior is controlled through consequences, including reinforcement which encourages behavior and punishment which discourages it.

Emitted Behavior

Behavior that is performed as a response to a specific stimulus or environment, often spontaneous or voluntary.

Social Learning Theorists

Researchers who emphasize the role of observation, imitation, and modeling in acquiring new behaviors.

Generalization

The process of applying information or conclusions from specific instances to broader contexts or situations.