Which One of the Following Statements Concerning the Random Walk

question 36

Multiple Choice

Which one of the following statements concerning the random walk hypothesis is correct?

• A)Stock price movements are predictable but only over short periods of time.
• B)Random price movements support the weak form efficient market hypothesis.
• C)Stock prices in general follow repetitive patterns but the actions of individual investors are random in nature.
• D)Random price movements indicate that investors can earn abnormal profits on a routine basis.

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Definitions:

Physiological Element

Refers to the basic physical or biological aspects that affect human behavior and responses in an environment.

Stress

The physical or psychological strain or tension that arises in response to perceived challenges, demands, or threats.

Physiological Element

Aspects or components related to the physical and biological functioning of an organism, including bodily processes and structures.

Distress

Extreme anxiety, sorrow, or pain that can affect an individual's mental and physical well-being.