Which financial market theory proposes that security prices move unpredictably as random walks, making technical pattern forecasting impossible?
ADow Theory
BGordon Model
CElliot Wave Theory
DRandom Walk Theory
Explanation
* Random Walk Theory states asset price changes are independent and identically distributed, making historical price patterns useless for future prediction.
* Closely linked with Weak-Form Efficient Market Hypothesis (EMH).
Exam Relevance
- Topic: Financial Markets
- Subtopic: Market Hypothesis

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