Question: Some commentators argue that stock prices follow a random walk. By this they mean that changes in stock prices in the future are not predictable,

Some commentators argue that stock prices “follow a random walk.” By this they mean that changes in stock prices in the future are not predictable, so no one can earn an abnormal return. Would stock prices follow a random walk if all investors were fundamental investors who use all available information to price stocks and agreed on the implications of that information?

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