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.

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Definitions:

Receivables Balance

Receivables balance refers to the total amount of money owed to a company by its customers for goods or services delivered on credit.

Accounts Receivable Period

The standard timeframe a company needs to gather owed payments from its customers.

Sales

The transactions involving the exchange of goods or services for money, representing the major source of revenue for a business.

Merchandise

Goods to be bought and sold in the course of business, typically in a retail or wholesale setting.