Multiple Choice
The statement that stock prices follow a random walk implies that
I.successive price changes are independent of each other;
II.successive price changes are positively related;
III.successive price changes are negatively related;
IV.the autocorrelation coefficient is either +1.0 or −1.0
A) I only
B) II and III only
C) IV only
D) III only
Correct Answer:
Verified
Correct Answer:
Verified
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