Which of the following is a feature of the 'Random Walk Hypothesis' of stock prices?
A. Successive price changes are independent and stock prices fully reflect available information
B. Only fundamental analysis is irrelevant
C. Stock prices are predictable based on past patterns
D. Technical analysis can systematically generate excess returns
Answer: Option A
Solution (By JKSSB Mock Tests)
The random walk hypothesis, closely related to the efficient market hypothesis, asserts that successive price changes are independent and that prices incorporate information so rapidly that future changes are unpredictable.
Explanation:
The Liquidity Coverage Ratio (LCR) requires banks to maintain an adequate stock of unencumbered high-quality liquid assets that can be converted into cash to meet liquidity needs for a 30-calendar-day stress scenario.
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