The random walk theory implies that stock prices
A) go down, then up, and then down again.
B) follow systematic trends.
C) can be forecast accurately by experts who are knowledgeable about how the stock market works.
D) will change as the result of unexpected factors that are virtually impossible to forecast accurately.

Question

Quizplus · Accepted Answer

The random walk theory suggests that stock prices change in a random manner and are influenced by unforeseen events, making them difficult to predict accurately.

The Random Walk Theory Implies That Stock Prices