[Solved] The random walk hypothesis posits that:

McqMate

Q.	The random walk hypothesis posits that:
A.	historical returns follow a random walk.
B.	historical prices follow a random walk.
C.	firm size follows a random walk.
D.	short-run investment returns are inherently unpredictable.
Answer» D. short-run investment returns are inherently unpredictable.

1.9k

0

Do you find this helpful?

13

View all MCQs in

Security Analysis and Investment Management

Discussion

No comments yet

Related MCQs

The difference between a random walk and a submartingale is the expected price change in a random walk is ______ and the expected price change for a submartingale is ______.
When Maurice Kendall examined the patterns of stock returns in 1953 he concluded that the stock market was __________. Now, these random price movements are believed to be _________.
In which form of the efficient market hypothesis do security prices reflect only past stock price and volume information?
The most extreme form(s) of the Efficient Market Hypothesis (EMH) is
Which of the following statements pertaining to the Efficient Market Hypothesis (EMH) is/ are true?
According to the Efficient Market Hypothesis (EMH) I. Stocks with smaller beta will be consistently overpriced. II. Stocks with higher beta will be consistently underpriced. III. Positive alphas on stocks will not remain for a longer period.