Many theorists examine the behavior of stock prices, and the random walk hypothesis attempts to explain why stocks move the way they do. The random walk hypothesis states that stock market prices ...

The random walk theorem, first presented by French mathematician Louis Bachelier in 1900 and then expanded upon by economist Burton Malkiel in his 1973 book A Random Walk Down Wall Street, asserts ...

We test the random-walk hypothesis for the Indian stock market by applying three unit root tests with two structural breaks. We find that unit root tests that allow for two structural breaks alone are ...

According to the “random walk” hypothesis, markets are inherently unpredictable. This hypothesis was the force behind the creation of index funds that were designed to simply replicate the returns of ...

Random walks constitute a foundational concept in probability theory, describing the seemingly erratic movement of particles or agents as they traverse a space in a series of stochastic steps. In many ...