Random Walk Down Wall Street Assignment

Due:  Friday March 20 (Must be submitted by email in double spaced MS Word format). Must be fewer than 7 pages

The project is worth 30 points.

 You must read the first 7 chapters (9th edition) or 8 chapters (8th edition) of Malikel's Random Walk and write an essay paper.

Your paper must address the following questions:

Define a random walk.

Contrast the firm foundation theory with the castles in the air theory.

Outline one speculative bubble from chapter 2 (the madness of crowds).

What is meant by the “New Era” of growth stocks in the 1960s?

Discuss the four components of the firm foundation theory?

Contrast technical and fundamental analysis (include examples).

Describe two technical systems from chapter 7.

Discuss the five factors that help explain why security analysts have such difficulty predicting the future of the stock market.