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What Does Random Walk Theory Mean?
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Answer / bhupender janmejai
this is the idea that stocks take a random
and unpredictable path. A follower of the
random walk theory believes it's impossible
to outperform the market without assuming
additional risk. Critics of the theory,
however, contend that stocks do maintain
price trends over time - in other words,
that it is possible to outperform the
market by carefully selecting entry and
exit points for equity investments.
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