The random walk hypothesis is most related to the:
A)weak-form EMH
B)semistrong-form EMH
C)semiweak-form EMH
D)strong-form EMH

Question

Quizplus · Accepted Answer

The random walk hypothesis suggests that future stock prices cannot be predicted from past prices, which is the weak-form of the EMH. The weak-form EMH implies that all past market prices, including trading volume and historical price, are already reflected in the current stock price. Therefore, any technical analysis, such as using past price or volume data, is unlikely to generate excess returns.

The Random Walk Hypothesis Is Most Related to The