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-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?
-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:

Transactional Model

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