Question: Topic: Is this Normal? One theory about the daily changes in the closing price of a stock is that these changes follow a random walk
Topic: Is this Normal?
One theory about the daily changes in the closing price of a stock is that these changes follow a random walk - that is, these daily events are independent of each other and move upward or downward in a random manner - and can be approximated by a normal distribution. To test this theory, collect themost recent closing prices of stocksfrom for your favorite company or brand. You can find this by going tofinance.yahoo.comand searching for "Your Company stock history." SeeExampleand DB starter video inUnit 4 LiveBinder.
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