If you believe that stock market prices follow a random walk, then:
A)historical price information provides no benefit in predicting future prices.
B)there is no financial benefit from investing in the stock market.
C)having inside information will not lead to abnormal profits.
D)studying past price movements will lead to abnormal profits.
E)you also believe the market is strong form efficient.

Question

Quizplus · Accepted Answer

If stock market prices follow a random walk, then historical price information provides no benefit in predicting future prices because future movements cannot be predicted based on past movements.

If You Believe That Stock Market Prices Follow a Random