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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