If Stock Prices Follow a Random Walk,it Means

question 50

Multiple Choice

If stock prices follow a random walk,it means

• A)long periods of declining prices are followed by long periods of rising prices.
• B)the greater the number of consecutive days of price declines,the greater the probability prices will increase the following day.
• C)stock prices are unrelated to random events that shock the economy.
• D)stock prices are just as likely to rise as to fall at any given time.

Appreciate the flexibility and adaptability of small businesses to changing market conditions.

Recognize the strategic importance of targeting market niches for small businesses.

Identifying the reasons people choose to start their own businesses.

Understand the challenges and problems faced by small businesses, including financing issues and market adaptability.

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Definitions:

Accrued Product Warranty

Liabilities recognized for future costs related to warranty claims on products sold that have not yet been serviced.

Taxable Income

The amount of income that is used to calculate an individual's or a company's income tax dues, calculated as gross income minus deductions and exemptions.

Pre-tax Book Income

The income of a company calculated before any tax is applied, based on accounting principles rather than tax laws.

Deferred Tax Liability

A tax obligation that is recorded on the balance sheet due to temporary timing differences in recognizing revenue and expenses for accounting and tax purposes.