Which of the following is a true statement?
A)While researchers found it difficult to reject the random walk hypothesis for exchange rates on empirical grounds,there is no theoretical reason why exchange rates should follow a pure random walk.
B)While researchers found it easy to reject the random walk hypothesis for exchange rates on empirical grounds,there are strong theoretical reasons why exchange rates should follow a pure random walk.
C)While researchers found it difficult to reject the random walk hypothesis for exchange rates on empirical grounds,there are compelling theoretical reasons why exchange rates should follow a pure random walk.
D)none of the options

Question

Quizplus · Accepted Answer

While empirical evidence did not strongly reject the random walk hypothesis for exchange rates, there is no clear theoretical foundation for exchange rates to follow a pure random walk. Therefore, option A is the only statement that is true.

Which of the Following Is a True Statement