If You Believe That Stock Prices Follow a Random Walk,then

question 10

Multiple Choice

If you believe that stock prices follow a random walk,then probably you

• A)do not believe that there is positive relationship between risk and return.
• B)do not believe that stock prices reflect all available information.
• C)believe in the validity of the efficient markets hypothesis.
• D)believe that it is a good idea to engage in fundamental analysis.

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Definitions:

Cultural Constructs

Shared belief systems, norms, and values that are socially constructed and vary widely between different societies and communities.

Masculinity

A set of attributes, behaviors, and roles associated with boys and men as socialized in a given society.

Femininity

A set of attributes, behaviors, and roles generally associated with girls and women by society, though its interpretation can vary widely.

Naturalistic Observation

A research method in which subjects are observed in their natural environment without any manipulation by the observer.