The Behavior of Stock-Market Prices Eugene F. Fama The ...

BEHAVIOR OF STOCK-MARKET PRICES 35 11. THEORY OF RANDOM WALKS IN STOCKPRICES The theory of random walks in stock prices actually involves two separate hypotheses: (1) successive price changes are independent, and (2) the changes conform to some probability distribution. weshall now examine each of these hypotheses in detail. A. INDEPENDENCE ................
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