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If stock prices follow a random walk, there would be unexploited profit opportunities in the market. Is this statement generally true or false? Explain your
"If stock prices follow a random walk, there would be unexploited profit opportunities in the market." Is this statement generally true or false? Explain your answer. The statement is generally (false, or true) because (the optimal forecast of a stock return would not equal the equilibrium return for that stock, expectations would not be rational, the optimal forecast of a stock return would equal the equilibrium return for that stock)
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