According to the Random Walk Theory

question 281

Multiple Choice

According to the random walk theory

• A) today's stock price will be related to yesterday's stock price.
• B) successive prices of a stock are independent of each other.
• C) stock prices can easily be predicted for as much as 52 weeks into the future.
• D) stock prices rise and fall in predictable cycles that correspond with the overall business cycle.

---

Definitions:

Level of Inventory

The quantity of goods, materials, and products held in stock by a business at a specific point in time.

Disposable Income

Post-income tax financial means available to households for saving and spending.

Control

in the context of management and business, refers to the process of regulating activities and verifying that everything is proceeding according to plan, to ensure the achievement of goals.

Disposable Income

Earnings left after subtracting taxes and social security contributions, which can be either saved or spent according to one's preferences.