Some people claim that stocks follow a random walk.What does this mean?
A)The price of stock one day is about what it was on the previous day.
B)Changes in stock prices cannot be predicted from available information.
C)Stock prices are not determined by market fundamentals such as supply and demand.
D)Prices of stocks of different firms in the same industry show no or little tendency to move together.

Question

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The Answer of Some people claim that stocks follow a random walk.What does this mean?
A)The price of stock one day is about what it was on the previous day.
B)Changes in stock prices cannot be predicted from available information.
C)Stock prices are not determined by market fundamentals such as supply and demand.
D)Prices of stocks of different firms in the same industry show no or little tendency to move together.

Some People Claim That Stocks Follow a Random Walk