The Following questions are for an assignment of Financial Risk Management.

Answer the following questions with proper Citations(source of the information) in your answer and use References (references of books and website) in the end of the script.

1. Discuss the random-walk theory, with its implication that investing in stocks is like playing roulette, is a powerful indictment of our capital markets.
2. If everyone believes you can make money by charting stock prices, then price changes wont be random - discuss.
3. The random-walk theory implies that events are random, but many events are not random. If it rains today, theres a fair bet that it will rain again tomorrow- Explain and analyze in detail.