Respond to each of the following comments. a. If stock prices follow a random walk, then capital

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Respond to each of the following comments.

a. If stock prices follow a random walk, then capital markets are little different from a casino.

b. A good part of a company’s future prospects are predictable. Given this fact, stock prices can’t possibly follow a random walk.

c. If markets are efficient, you might as well select your portfolio by throwing darts at the stock listings in The Wall Street Journal.

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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