Which of the following is true?
A)A random walk for stock price changes is inconsistent with observed patterns in price changes.
B)If the stock market follows a random walk, price changes should be highly correlated.
C)If the stock market is weak form efficient, then stock prices follow a random walk.
D)All of the above.
E)Both B and C.

Question

Quizplus · Accepted Answer

In a weak form efficient market, all past trading information is already reflected in stock prices, implying that price changes are random and follow a random walk.

Which of the Following Is True