What is the random walk hypothesis, and how does it apply to stocks? What is an efficient

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What is the random walk hypothesis, and how does it apply to stocks? What is an efficient market? How can a market be efficient if its prices behave in a random fashion?

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Fundamentals of Investing

ISBN: 978-0133075359

12th edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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Question Posted: Apr 28, 2015 03:42 AM

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What is the random walk hypothesis, and how does it apply to stocks? What is an efficient

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The random walk hypothesis claims that stock prices follow a random or erratic pat...View the full answer

Fundamentals of Investing

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