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random walk theory
noun
- stock exchange the theory that the future movement of share prices does not reflect past movements and therefore will not follow a discernible pattern
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Example Sentences
We meet the “mosquito man,” Sir Ronald Ross, whose study “The Logical Basis of the Sanitary Policy of Mosquito Reduction” became the foundation of the so-called random walk theory.
From New York Times
Then again, there’s always the so-called “random walk” theory to investing.
From Forbes
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