If Stock Prices Follow a Random Walk,then Stock Investors Can

question 19

Multiple Choice

If stock prices follow a random walk,then stock investors can make large profits by

• A)buying stocks whose prices have been falling for several days.
• B)buying stocks whose prices have been rising for several days.
• C)performing fundamental analysis of stocks using data contained in annual reports.
• D)using inside information.

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Definitions:

Costly

Involving great expense; items or actions that require a significant amount of money or resources.

Legal Aid

Assistance provided to individuals unable to afford legal representation and access to the court system.

Small Business Owner

An individual who owns and operates a business with a small number of employees and relatively low volume of sales.

Retainer

A deposit paid by a client to a lawyer before the lawyer commences work on behalf of the client.