RANDOM WALK THEORY Definition & Meaning

random walk theory

noun

stock exchange the theory that the future movement of share prices does not reflect past movements and therefore will not follow a discernible pattern

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We meet the “mosquito man,” Sir Ronald Ross, whose study “The Logical Basis of the Sanitary Policy of Mosquito Reduction” became the foundation of the so-called random walk theory.

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Then again, there’s always the so-called “random walk” theory to investing.

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random walk theory

noun

Example Sentences