If the stock prices follow a random walk,successive stock price changes are not related.

Question

Quizplus · Accepted Answer

In a random walk model, each successive price change is assumed to be independent of the previous one, meaning that there is no relationship or correlation between them. This is because random walk models assume that stock prices are unpredictable and follow a random path, influenced by a multitude of factors such as supply and demand, global events, and company performance. Therefore, option A is true.

If the Stock Prices Follow a Random Walk,successive Stock Price