Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
12th Edition
ISBN: 9781259144387
Author: Richard A Brealey, Stewart C Myers, Franklin Allen
Publisher: McGraw-Hill Education
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Chapter 13, Problem 1PS
Summary Introduction

To discuss: Whether any of the given statements are true.

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Explanation of Solution

The correct option as follows:

Differ by a random number: The price changes are not dependent of one another and follow a random walk efficient market says that stock price changes should be in random and not able to be predicted or unforeseeable.

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