Random walk theory says

Question

Quizplus · Accepted Answer

Random walk theory suggests that the movement of stock prices is independent of past movements and cannot be predicted, making random selection of stocks just as effective as other methods of stock choice. Therefore, option B is the correct choice. Option A is incorrect because randomly throwing darts is not a reliable way to make investment decisions. Option C is incorrect because speculation can definitely lose money, even over a long period of time. Option D is incorrect because investment in stocks can be profitable, although the returns are not guaranteed.

Random Walk Theory Says