The Random Walk Theory of Stock Prices States That Price

question 41

Multiple Choice

The random walk theory of stock prices states that price movements in disjoint time periods are independent of each other.The probability that the value of a portfolio of stocks invested in companies listed on the TSE300 rises in any one year is 0.60.What is the probability that the portfolio's value moves in the same direction in both of the next 2 years?

• A)0.06
• B)0.36
• C)0.52
• D)0.96

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Definitions:

Norepinephrine

A neurotransmitter and hormone involved in arousal, alertness, and the stress response.

Dopamine

A neurotransmitter involved in controlling the brain's reward and pleasure centers, as well as regulating movement and emotional responses.

Endorphins

Are neurochemicals produced by the nervous system to cope with pain or stress, often referred to as "feel-good" chemicals.

Heroin Withdrawal

The process or symptoms that occur when an individual who is dependent on heroin abruptly decreases or stops their use of the drug. It often includes symptoms such as nausea, muscle aches, and anxiety.