1. Are stock prices a random walk? a) Go to finance.yahoo.com and download Apple's (AAPL) entire price history on daily basis to an Excel spreadsheet. b) Calculate daily returns (percent change in the adjusted closing price). c) How many days was the stock up/down/no change from the IPO date to the most recent trading day? d) Also compute the total and annual return to this stock e) Is Apple's stock price series a random walk based on your computation? Explain your reasoning

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In the context of financial markets a random walk refers to the idea that stock prices evolve random... View the full answer