Available evidence indicates that stock prices, even if not exactly a random walk, are very close to a random walk.

Question

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Most empirical research supports the hypothesis that stock prices follow a pattern very close to a random walk, meaning future price movements are largely unpredictable based on past price movements. This is a cornerstone of the Efficient Market Hypothesis, which suggests that asset prices fully reflect all available information.

Available Evidence Indicates That Stock Prices, Even If Not Exactly