ExamVeda
Login
Home
This question belongs to Commerce Financial Management
Financial Management
?

The random walk hypothesis is most related to the___________.

Answer & Solution
Correct Answer: Option A
The random walk hypothesis is most related to the weak-form EMH. Weak form efficiency, also known as the random walk theory, states that future securities' prices are random and not influenced by past events. Advocates of weak form efficiency believe all current information is reflected in stock prices and past information has no relationship with current market prices.
Examveda
Question posted by Examveda
Community

Join the Discussion

No comments yet Be the first to discuss this question.