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When the stock price follows a random walk, the price today is said to be equal to the prior period price plus the expected return
When the stock price follows a random walk, the price today is said to be equal to the prior period price plus the expected return for the period with any remaining: difference to the actual return due toa.a predictable amount based on the past prices.bthe risk free rate.ca component based on new information unrelated to past prices.dthe securitys risk.
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