The random walk theory implies that stock prices
a. go down, then up, and then down again.
b. go up and then down in a predictable pattern.
c. follow systematic trends.
d. are unpredictable based on past trends.
D
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Which of the following statements has usually held TRUE about the relationship between the trade deficits and government budget deficits?
A) There is a negative relationship between trade deficits and budget deficits. B) There is a positive relationship between trade deficits and budget deficits. C) There is no relationship between trade deficits and budget deficits. D) A relationship exists only when there is a balanced budget.
An increase in U.S. Treasury deposits at the Fed reduces both ________ and the ________
A) reserves; monetary base B) Fed liabilities; money multiplier C) Fed assets; monetary base D) Fed assets; money multiplier