The Random Character of Stock Market Prices

While I’ve spent much of my career debunking the Random Walk Theory and the Efficient Market Hypothesis, I believe you need to understand where we’re coming from in order to develop new ideas.

Cootner’s anthology contains all of the important early writings that became Capital Market Theory. You will find Bachilier’s original paper from 1900 postulating using statistics to analyze markets. Mandelbrot’s original paper suggesting that markets are not a random walk is here, too. 

It’s an important time capsule of the development of market theory. I’ve read it extensively because you can’t criticize widely held ideas unless you know… show more.