The stock market follows a
A) nonrandom walk.
B) submartingale.
C) predictable pattern that can be exploited.
D) nonrandom walk and predictable pattern that can be exploited.
E) submartingale and predictable pattern that can be exploited.

Question

Quizplus · Accepted Answer

The stock market is often modeled as a submartingale, meaning that its expected future value is at least as high as its current value, reflecting the idea that prices incorporate all available information and tend to rise over time.

The Stock Market Follows a