Multiple Choice
If stock prices follow a random walk,
A) speculation in the stock market destabilizes prices.
B) a stock's past performance is not a good indicator of its future performance.
C) rumors, news, and other "signals" have no effect on stock prices.
D) the stock market does not participate in channeling resources toward firms with high stock prices.
Correct Answer:
Verified
Correct Answer:
Verified
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