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Random Walk Theory implies that future price changes are:
ADetermined by past price patterns
BLinked to volume signals exclusively
CPredictable from chart patterns
DIndependent of past price movements
Answer & Solution
Correct answer: D. Independent of past price movements
1. Identify what the question asks: this concept maps to randomwalk (§2.4.3).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (D).
_Source: ICAI BoS CA Final Paper 2, Ch 4 "Security Analysis"_
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