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Followers of the random walk hypothesis believe thatA) security analysis is the best tool to utilize when investing in the stock market.B) the price movements of stocks are unpredictable, and therefore security analysis will not help to predict future market behavior.C) the price movements of stocks follow a "flag" formation such that charting prices can help an investor better time his or her security purchases.D) support levels and resistance lines, when combined with basic chart formations, yield both buy and sell signals

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Answer: Option B

Explanation: In simple words, random walk hypothesis refers to the hypothesis which assumes that the change in the prices of security in the market takes place randomly and thus no possibility of future could be determined.

The followers of this hypothesis assumes the markets are efficient and all the information is depicted in the prices already.

Hence from the above we can conclude that the correct option is B.

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