Theory that stock price changes from day to day are at random; the changes are independent of each other and have the same probability distribution Many believers of the random walk theory believe that it is impossible to outperform the market consistently without taking additional risk
An economic theory that price movements in the commodity futures markets and in the securities markets are completely random in character (i e , past prices are not a reliable indicator of future prices)
The movements of a variable whose future changes cannot be predicted because, given today's value, the variable is just as likely to fall as to rise 280
A stock market theory that hypothesizes that past prices are of no use in forecasting future price movements The theory maintains that prices move in a random pattern and that they are no more predictable than the walking pattern of a wandering person This directly contradicts technical analysts' use of charts to forecast stock prices
An economic theory that price movements in the futures markets and in the securities markets are completely random in character (i e , past prices are not a reliable indicator of future prices)
Theory that stock price changes from day to day are accidental or haphazard; changes are independent of each other and have the same probability distribution Many believers in the random walk theory believe that it is impossible to outperform the market consistently without taking additional risk