If stock prices did not follow a random walk, there would be unexploited profit opportunities in the

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If stock prices did not follow a random walk, there would be unexploited profit opportunities in the market. Is this statement true, false, or uncertain? Explain your answer.

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Economics of Money, Banking and Financial Markets

ISBN: 978-0321598905

9th Edition

Authors: Frederic S. Mishkin

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Question Posted: Aug 12, 2012 04:17 AM

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If stock prices did not follow a random walk, there would be unexploited profit opportunities in the

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True as an approximation If large changes in a stock price could be predicted then the optimal fo...View the full answer

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