-Discuss the Relationship Between a Random Walk and Informational Efficiency

question 73

Essay

-Discuss the relationship between a random walk and informational efficiency in financial assets.Consider the figure above,which shows the weekly gains/ (losses),in percent,in Microsoft's stock price 2005-2007.Given what you know,could you make a case that this market is efficient?

---

Definitions:

Competing

Involves entities or individuals striving against each other to achieve a goal that cannot be shared.

Everyday Low Pricing

A pricing strategy where companies consistently offer products at low prices rather than relying on sales or discounts, aiming to attract price-sensitive consumers.

Discounted

A reduction applied to the usual price of a product or service.

Sale Products

Items or services offered to the public at a reduced price for a limited time.