the theory that the future movement of share prices does not reflect past movements and therefore will not follow a discernible pattern
Examples of 'random walk theory' in a sentence
random walk theory
In order to develop a reliability assessment model some elements of random walk theory were applied.
Tomaszek Henryk, Zieja Mariusz, Ważny Mariusz 2016, 'A Method for Reliability Assessment of Structural Components of Aircraft and Sea-GoingShips with Taking into Account a Given Failure Generation Model', Polish Maritime Researchhttp://www.degruyter.com/view/j/pomr.2016.23.issue-2/pomr-2016-0024/pomr-2016-0024.xml?format=INT. Retrieved from DOAJ CC BY 4.0 (https://creativecommons.org/licenses/by-sa/4.0/legalcode)
We use the continuous time random walk theory to quantitatively explain the observed scaling relations of the process.
Xiao-Rong Yang, Yan Wang 2019, 'Ubiquity of anomalous transport in porous media: Numerical evidence, continuous timerandom walk modelling, and hydrodynamic interpretation', Scientific Reportshttp://link.springer.com/article/10.1038/s41598-019-39363-3. Retrieved from DOAJ CC BY 4.0 (https://creativecommons.org/licenses/by-sa/4.0/legalcode)