If Stock Prices Follow a "Random Walk," Does This Mean

question 16

Essay

If stock prices follow a "random walk," does this mean that they move haphazardly,
with no rhyme nor reason?

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Definitions:

Government

The governing body of a nation, state, or community, usually responsible for policymaking, administration, and regulation.

Units

Basic quantities or measurements used to express variables, such as meters for length or kilograms for weight.

Price Ceiling

A government-imposed limit on the price charged for a product, aimed at keeping prices from rising too high.

Quantity Demanded

The amount of a good or service consumers are willing and able to purchase at a given price.