Question
Asked Mar 8, 2020
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A “random walk” occurs when:
a. Stock price changes are random but predictable.
b. Stock prices respond slowly to both new and old information.
c. Future price changes are uncorrelated with past price changes.
d. Past information is useful in predicting future prices.

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Expert Answer

Step 1

Random walk:

Random walk is a theory of finance states that present alterations in the prices are not based on t...

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