The theory that price changes over time are independent of one another is best described as random walk hypothesis.

Name: The theory that price changes over time are independent of one another is best described as random walk hypothesis.
Brand: Quizplus
Rating: 4.8 (28 reviews)

Question

Quizplus · Accepted Answer

The random walk hypothesis suggests that stock market prices evolve according to a random walk and thus the price changes are independent of each other, making it impossible to predict future price movements based on past prices.

The Theory That Price Changes Over Time Are Independent of One