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29 May, 12:03

If the price of a stock falls on 4 consecutive days of trading, then stock prices:

A. cannot be following a random walk.

B. can still be following a random walk.

C. are almost certain to increase the following day.

D. are almost certain to decrease the following day

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Answers (1)
  1. 29 May, 12:30
    0
    D. are almost certain to decrease the following day

    Explanation:

    When the stock prices fall which means that the company has to sell extra stocks and it also signifies that the stocks are depressed and are going to be more expensive and this leads to a drop in the price of the stocks. Hence it's essential to sell or trade these stocks before they get unavailable or costly. The decline of the stocks takes time to recover.
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Home » Business » If the price of a stock falls on 4 consecutive days of trading, then stock prices: A. cannot be following a random walk. B. can still be following a random walk. C. are almost certain to increase the following day. D.
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