Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 20 of 20
The statement that stock prices follow a random walk implies that ______
B. successive price changes are positively or negatively related.
C. the autocorrelation coefficient is positive.
A. successive price changes are independent of each other.
B. successive price changes are positively or negatively related.
C. the autocorrelation coefficient is positive.
User Contributed Comments 4
| User | Comment |
|---|---|
| 01121975 | A random walk: future prices can not be predicted form the past ones. |
| accounting | there is no relationship between price changes |
| ljamieson | random walk is a Markov process |
| johntan1979 | No correlation between past and future prices. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe market anomalies
CFA® 2025 Level I Curriculum, Volume 3, Module 3.