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 daily price change, and there are t days until expiration, the variance of the cumulative price changes is:

A) σ2
B) (σ2) * (t)
C) (σ2) /t
D) none of the above