CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

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

A. successive price changes are independent of each other.
B. successive price changes are positively or negatively related.
C. the autocorrelation coefficient is positive.
Correct Answer: A

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.
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