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:

Ideological Frame

A set of beliefs, values, and ideas that shapes the way individuals or groups understand and interpret their social world.

Firm's Backstory

The history or narrative behind a company, explaining its origins, evolution, and the rationale for its existence.

External Analysis

The process of evaluating external factors that could affect an organization's performance, including market trends, competition, and political, economic, social, technological, environmental, and legal factors.

Fanatically Loyal

Describes consumers who are extremely devoted or committed to a brand beyond reason.