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this forms the fundamental assumption of the "random walk" theory of the stock market, which has been verified many times over the years.

To a certain (high) degree of approximation. The very existence of hedge funds disproves (by countereaxmple) the assumption that information has already been discounted in the stock prices.

I was going to pick a nit on the term "random walk" but I'll refrain. If you're using it in a nontechnical sense there's no nit to pick.

"It's the statue, man, The Statue."

by Migeru (migeru at eurotrib dot com) on Mon Mar 26th, 2007 at 05:25:18 PM EST
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