The Random Walk Hypothesis Contends That Stock Prices Occur Randomly

question 93

True/False

The random walk hypothesis contends that stock prices occur randomly.

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Definitions:

Expected Rate of Return

The anticipated return on an investment, taking into account both the risk of the investment and market conditions.

Standard Deviation

A statistical measure of the dispersion or variability in a dataset, commonly used in finance to quantify the risk associated with a security's price movements.

Risk

The exposure to the possibility of financial loss or variation in the returns of an investment.

Standard Deviation

Standard deviation measures the amount of dispersion or variability in a set of values, indicating how much the individual data points differ from the mean or average.