The random walk hypothesis
A) has been disproved based on recent computer simulations.
B) supports the notion that random price movements are indicative of inefficient markets.
C) implies that security analysis is unable to predict future market behaviour.
D) suggests that random patterns appear but only over long periods of time.

Question

Quizplus · Accepted Answer

The random walk hypothesis suggests that stock prices move randomly and are not influenced by past movements, implying that security analysis cannot reliably predict future market behavior.

The Random Walk Hypothesis