According to the Random Walk Theory

question 443

Multiple Choice

According to the random walk theory

• A) the probability that a stock's price will increase tomorrow is greater if it increased today.
• B) the probability that a stock's price will increase tomorrow is greater if it decreased today.
• C) the best forecast of tomorrow's price is today's price.
• D) the best forecast of tomorrow's price is found by determining the trend for the last five trading days.

---

Definitions:

Knowledge Worker

Someone whose knowledge is a critical resource for employers.

Important Asset

A valuable resource owned by a person or company, regarded as being critical for achieving success or meeting objectives.

Employers

Entities or individuals who hire people to perform services or work in exchange for compensation.

Decision

A choice between alternative courses of action.