Multiple Choice
A martingale has the property that
A) it is inherently unpredictable.
B) the best prediction of its value tomorrow is its value today.
C) the best prediction of its future growth rate is its current growth rate.
D) the best prediction of its value tomorrow can be computed by looking at its past behavior.
E) the best prediction of its value tomorrow can be computed by looking at the past two periods.
Correct Answer:
Verified
Correct Answer:
Verified
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