Security prices are said to follow a "random walk," which means that:
A) successive price changes are unpredictable.
B) it is impossible to know whether stocks offer higher returns than bonds.
C) investment analysts are unnecessary.
D) stock selection for portfolio composition is unimportant.
Answer: A) successive price changes are unpredictable.
You might also like to view...
GASB standards require that any fund that does not meet the specified criteria to be considered a major fund must be reported as part of a single column under the label nonmajor fund.
a. true b. false
A loan officer gives a broker a small referral fee in return for his referral of a client looking to purchase a single-family home. Under RESPA:
a. this is legal, if disclosures are made to all parties. b. this is forbidden. c. this is illegal if this fact is not disclosed to the buyer. d. this is legal.