... of time prices maintain an upward trend (Malkiel, 2003). This is basically stating that the chance of a stock's future price going up is the same as it going down. Both technical analysis and fundamental analysis are largely a waste of time and are still unproven in outperforming the markets (Malkiel, 2003). The random walk theory impacts a financial manager's decision on long-term and short-term investments. If a financial manager were to use this theory then a long-term buy-and-hold strategy would be the best strategy and the manager would not attempt to time the market. Although many investors may believe that this theory was thought of in a different time and market condition, thus making it unreliable. This concept of random walking is not popular with a lot of educated financial managers probably because it condemns analysis and stock picking, the foundation of Wall Street. Some money managers do succeed, ...

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