According to the Efficient Markets Hypothesis, Stocks Follow a Random

question 198

True/False

According to the efficient markets hypothesis, stocks follow a random walk so that stocks that increase in price one year are more likely to increase than decrease in the next year.

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Definitions:

Punishment

A consequence that reduces the likelihood of a behavior being repeated, often applied to discourage undesirable behaviors.

Behavioral Sequence

A series of actions or behaviors that occur in a particular order or pattern.

Negative Reinforcement

A behavioral principle where the removal of an adverse stimulus strengthens or increases the probability of a behavior.

Time-out

A behavioral correction method that involves temporary isolation or removal from a stimulating environment to decrease undesirable behaviors.