What is the random walk hypothesis?
Q: What is the random walk hypothesis?
A: The random walk hypothesis is a financial theory that asserts stock market prices change randomly and cannot be predicted.
Q: Who is credited with developing the random walk hypothesis?
A: The concept can be traced back to French broker Jules Regnault who published a book in 1863 and French mathematician Louis Bachelier, whose Ph.D. dissertation "The Theory of Speculation" (1900) had comments on the subject.
Q: Who wrote a book about the random character of stock market prices in 1964?
A: MIT Sloan School of Management professor Paul Cootner wrote a book called "The Random Character of Stock Market Prices" in 1964.
Q: What is the name of the book written by Burton Malkiel in 1973 that made the term "random walk" popular?
A: The book written by Burton Malkiel in 1973 was called "A Random Walk Down Wall Street."
Q: When was the theory that stock prices move randomly first proposed?
A: The theory that stock prices move randomly was first proposed by Maurice Kendall in his 1953 paper, "The Analysis of Economic Time Series, Part 1: Prices."
Q: When was Eugene Fama's article "Random Walks In Stock Market Prices" published?
A: Eugene Fama's article "Random Walks In Stock Market Prices" was published in 1965.
Q: What does the random walk hypothesis say about stock market prices?
A: The random walk hypothesis states that stock market prices change in a random way that cannot be predicted.
