How Does the Random Walk Theory Explain Market Crashes

question 27

Essay

How does the random walk theory explain market crashes?

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Definitions:

Economic Security

The state of possessing a consistent income or other means to maintain a current lifestyle and anticipate similar stability moving forward.

Federal Government

The national government of a federal country, where powers are divided between the central authority and constituent political units, such as states or provinces.

Share Our Wealth

A program proposed by Senator Huey Long during the Great Depression that aimed to redistribute wealth in the United States.

Confiscate Wealth

The act of a government or authority legally taking private property, often for public use or as a penalty for legal violations.