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Which one of the following statements concerning the random walk hypothesis is​ correct?
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Part 1
A.
Stock prices in general follow repetitive patterns but the actions of individual investors are random in nature.
B.
Random price movements indicate that investors can earn abnormal profits on a routine basis.
C.
Stock prices respond to new information.
D.
Stock price movements are predictable but only over short periods of time.

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Respuesta :

Answer:

The answer C) Stock prices respond to new information

Explanation:

Randon walk hypothesis is a financial theory stating that stock market prices evolve on random basis. Stock prices cannot be predicted. It is consistent with efficient market hypothesis.

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