A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Twelfth Edition)

Authors: Burton G. Malkiel

Key Ideas

1. Efficient Market Hypothesis: The stock market is efficient and it is impossible to consistently beat the market.

2. Random Walk Theory: Stock prices follow a random walk and are unpredictable in the short term.

3. Diversification: Investing in a diverse portfolio of assets helps to reduce risk.

4. Indexing: Investing in low-cost index funds is a reliable strategy for long-term investors.

5. Market Timing: Timing the market is nearly impossible and trying to do so can lead to poor investment decisions.

6. Active vs Passive Management: Passive management often outperforms active manageme....
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Quiz

1. What is the Efficient Market Hypothesis?

A theory that suggests stock prices follow a random walk.

A strategy for successful long-term investing.

Investing in low-cost index funds.

The belief that it is impossible to consistently beat the market.

2. What is the purpose of diversification?

To predict future stock performance.

To reduce risk by investing in a variety of assets.

To time the market and take advantage of price fluctuations.

To evaluate a company's financial health.

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