Question

The term random walk is used in investments to refer to ______________.A. stock price changes that are random but predictableB. stock prices that respond slowly to both old and new informationC. stock price changes that are random and unpredictableD. stock prices changes that follow the pattern of past price changes

Answer 1

C. stock price changes that are random and unpredictable

Step-by-step explanation:

Random walk -

In terms of business ,

This theory determines the changes in the prices of stock are not related to each other and are basically completely random and can not be predicted .

Hence , the past details can not forecast the present changes in the stock market .

Hence , the correct statement about random walk is ( c ) .