Which of the following is true? A random walk for stock price changes is inconsistent...
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Accounting
Which of the following is true?
A random walk for stock price changes is inconsistent with observed patterns in price changes.
If the stock market follows a random walk, price changes should be highly correlated.
If the stock market is weak form efficient, then stock prices follow a random walk.
All of these.
Both If the stock market follows a random walk, price changes should be highly correlated; and If the stock market is weak form efficient, then stock prices follow a random walk.
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