«I also found it difficult to integrate the efficient - market
hypothesis (that everything in the stock market is «known» and prices are always «rational» with the
random -
walk hypothesis (that the ups and downs
of the market are irrational and entirely unpredictable).
I remember learning about the «
Random Walk Hypothesis» of the stock market when I was taking finance courses for my MBA, The hypothesis is that stock market prices evolve based on a random walk and can not be predic
Walk Hypothesis» of the stock market when I was taking finance courses for my MBA, The hypothesis is that stock market prices evolve based on a random walk and can not be
Hypothesis»
of the stock market when I was taking finance courses for my MBA, The
hypothesis is that stock market prices evolve based on a random walk and can not be
hypothesis is that stock market prices evolve based on a
random walk and can not be predic
walk and can not be predicted.
Shiller says: «The efficient markets theory and the
random walk hypothesis have been subjected to many tests using data on stock markets, in studies published in scholarly journals
of finance and economics.