If share prices appear to follow a random walk: selecting shares for portfolios is irrelevant. investment analysts are unimportant. successive share price changes are unpredictable. it is impossible to know when to buy shares.

If share prices appear to follow a random walk: selecting shares for portfolios is irrelevant. investment analysts are unimportant. successive share price changes are unpredictable. it is impossible to know when to buy shares.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter2: Fundamental Economic Concepts

Section: Chapter Questions

Problem 6E

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Question

If share prices appear to follow a random walk:

		selecting shares for portfolios is irrelevant.
		investment analysts are unimportant.
		successive share price changes are unpredictable.
		it is impossible to know when to buy shares.

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