Question: Question: What is the random walk hypothesis, and how does it apply to stocks? What is an efficient market? How can a market be efficient

Question:

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?

Reference:

Gitman, L. J., Joehnk, M. D., & Smart, S. B. (2011). Fundamentals of investing (11th ed.). Retrieved fromhttps://www.vitalsource.com/

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