Some People Claim That Stocks Follow a Random Walk

question 28

Multiple Choice

Some people claim that stocks follow a random walk.What does this mean?

• A)The price of stock one day is about what it was on the previous day.
• B)Changes in stock prices cannot be predicted from available information.
• C)Stock prices are not determined by market fundamentals such as supply and demand.
• D)Prices of stocks of different firms in the same industry show no or little tendency to move together.

Identify the processes and significance of after-action reviews in organizational learning and improvement.

Understand the importance of setting performance objectives and how they are used in management (Management by Objectives - MBO).

Recognize the role and mechanisms of disciplinary actions in organizational behaviour management.

Distinguish between different control flows within an organization (e.g., bureaucratic vs. clan control).

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Definitions:

Bonus Pool

A fund allocated for bonuses, typically based on company performance, and distributed to employees based on predetermined criteria.

Fixed Percentage

A specified, constant proportion or rate that does not change with variation in base quantities, often used in financial contexts like interests or commissions.

Deferred Profit-Sharing Plans

A type of profit-sharing plan where contributions are deferred and placed in a trust for the employee until a set time, often retirement.

Quasi Pension Plans

Programs that mimic traditional pension plans but typically offer more flexibility and are often funded by the employees, sometimes with employer contributions.