answersLogoWhite

0

Random walk in finance basically means that stock prices or security prices cannot be accurately predicted or guessed and hence all the tricks using CAPM OR any other way to create an ideal portfolio is just a myth. For Example: According to Random walk, the theory was that being an investor in the stock market what goes into my mind cannot be predicted by any finance theory, hence my behaviour in the future which decides the price of the stock ( whether to go up or down ) cannot be predicted. ITS A NEW DAY AT THE STOCK EVERYDAY.

User Avatar

Wiki User

12y ago

What else can I help you with?