If the Stock Price Follows a Random Walk, Successive Price

Multiple Choice

If the stock price follows a random walk, successive price changes are statistically independent. If σ² is the variance of the daily price change, and there are t days until expiration, the variance of the cumulative price change is

A) σ²
B) (σ²) × (t) .
C) (σ²) /t.
D) (σ²) × (t²) .