When we describe stock prices as following a random walk,we mean that future changes in stock prices are
A)unpredictable.
B)increasing.
C)decreasing.
D)constant.

Question

Quizplus · Accepted Answer

When we describe stock prices as following a random walk, it means that future changes in stock prices are unpredictable, as the movement of the stock price is determined by random fluctuations in supply and demand, news events, and other factors that cannot be predicted with certainty. Therefore, there is no way to consistently forecast future stock prices accurately.

When We Describe Stock Prices as Following a Random Walk,we