If stock prices follow a random walk,their prices bear no relation to the company's real activities.

Name: If stock prices follow a random walk,their prices bear no relation to the company's real activities.
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Question

Quizplus · Accepted Answer

Stock prices may follow a random walk in the short term, but in the long term, they do tend to reflect the company's real activities and profitability. Factors such as financial reports, economic indicators, and market trends all play a role in determining the value of a company's stock.

If Stock Prices Follow a Random Walk,their Prices Bear No