According to random-walk theory,what are the odds that a stock will increase in price after having increased on 2 consecutive days of trading?
A) 0.0%
B) 12.5%
C) 50.0%
D) 100.0%

Question

Quizplus · Accepted Answer

Random-walk theory states that the movement of stock prices is random and unpredictable. Therefore, the probability of a stock's price increasing or decreasing on any given day is 50%. The stock's performance on the previous two days does not affect the probability of its performance on the current day. Hence, the answer is 50%.

According to Random-Walk Theory,what Are the Odds That a Stock