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The random walk theory says that

barmour44

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The random walk theory says that

Question 1.

According to the random walk theory

• stock prices can easily be predicted for as much as 52 weeks into the future.

• today's stock price will be related to yesterday's stock price.

• stock prices rise and fall in predictable cycles that correspond with the overall business cycle.

• successive prices of a stock are independent of each other.

Question 2.

The random walk theory says that

• successive stock prices are dependent on the weighted average of the previous week's prices.

• stock prices follow a trend for varying periods of time.

• successive stock prices increase more than they decrease.

• successive stock prices are independent of each other.

Textbook

Economics Today: The Micro View

Edition: 19^th

Author: Miller

Read 62 times

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barmour44 Author

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I appreciate what you did here, answered it right Smiling Face with Open Mouth

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You make an excellent tutor!

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