If you believe that stock market prices follow a random walk,then:
A) historical price information provides no benefit in predicting future prices.
B) there is no financial benefit from investing in the stock market.
C) having inside information will not lead to excess profits.
D) studying past price movements will lead to excess profits.
E) you also believe the market is strong-form efficient.

Question

Quizplus · Accepted Answer

If stock market prices follow a random walk, then historical price information provides no benefit in predicting future prices. This is because future prices are simply the result of random fluctuations, and therefore cannot be predicted based on past patterns.

If You Believe That Stock Market Prices Follow a Random