Question: 1. The random walk model suggests that day-to-day changes in the price of a stock should have a mean value of zero, how do you

1. The random walk model suggests that day-to-day changes in the

1. The random walk model suggests that day-to-day changes in the price of a stock should have a mean value of zero, how do you test the random walk hypothesis? 2. stochastic version of Samuelsons (1939) classic model: Yt = (t + it Ct = ayt-1 + ect 0

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