The statement that stock prices follow a random walk implies that:

$1)$ the correlation coefficient between successive price changes $($auto correlation$)$ is not significantly different from zero

$2)$ successive price changes are positively related

$3)$ successive price changes are negatively related

$4)$ the auto correlation coefficient is positive

Question $10$Answer

a$.$

$1$ only

b$.$

$2$ only

c$.$

$2$ and $3$ only

d$.$

$4$ only