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Technology Stocks : SAP A.G.
SAP 253.38-0.4%11:27 AM EST

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To: Sam Citron who wrote (2492)9/9/1998 4:23:00 PM
From: growthvalue  Read Replies (2) of 3424
 
"Some would say that the ability of anyone to consistently outperform the index proves that the market is not a random walk"

Those who would say that are actually incorrect. If you had a million people try to guess the outcome of 10 consecutive coin flips, approximately 977 people would be expected to get all 10 guesses right. That doesn't change the fact that on average, you can't guess a coin flip with better than 50/50 accuracy.

I'm not saying the market actually is a random walk, I'm just saying that "the ability of anyone to consistently outperform the index" doesn't necessarily disprove it.

Tim
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