Which of the following is an implication of the random walk theory?
A) Experts will be able to make money by picking and choosing the best stocks.
B) There is a systematic pattern to the movement of prices in the stock market.
C) Stock market investors can expect to earn a fairly steady real rate of return of about 7 percent annually.
D) Even experts will be unable to predict the future movement of stock prices with any degree of accuracy.

Question

Quizplus · Accepted Answer

The random walk theory suggests that stock prices move randomly and are not influenced by past movements, making it difficult for anyone, including experts, to predict future price movements accurately.

Which of the Following Is an Implication of the Random