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3 votes
Which one of the following terms is used to describe a stock price that moves over time creating no discernible pattern?

a) Bull market
b) Bear market
c) Random walk
d) Trendline

asked
User HouFeng
by
8.6k points

1 Answer

5 votes

Final answer:

The correct term for a stock price that moves without a discernible pattern is called a 'random walk'. This explains the unpredictable daily price changes, but over time, stocks have an underlying upward trend due to generally positive economic growth.

Step-by-step explanation:

The term used to describe a stock price that moves over time creating no discernible pattern is random walk. This concept indicates that on any given day, stock prices are just as likely to rise as to fall, and there is no predictable pattern to these movements in the short term. However, the term "with a trend" implies that over a longer period, the stock market has a tendency to rise, as the upward movements often outweigh the downward ones, indicating a general upward trajectory.

answered
User Abhishek Saharn
by
8.5k points
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