If stock prices follow a random walk then capital markets are little different from a casino. Explain.
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Question:
If stock prices follow a random walk then capital markets are little different from a casino. Explain. True or False:
Given the fact that a large portion of a company’s future prospects are predictable, stock prices can’t possibly follow a random walk. Explain. True or False:
True or False: If markets are efficient based on the strong or semi-strong form, you might as well select your portfolio by throwing darts at the stock listings in the Wall Street Journal. Explain.
Related Book For
Economics of Money, Banking and Financial Markets
ISBN: 978-0321598905
9th Edition
Authors: Frederic S. Mishkin
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