Expected gains can be increased in this manner. On the other hand, as per the article, the random-walks theory depicts that the price level future pathway related to security is nothing much predictable in nature. This has been compared to the cumulated random numbers series path. In terms of statistics, the theory states that successive changes in price have independence (Fama, 1965). This independence comes forward in the variables with random identical distribution. This implies most simply that the price series and the changes do not have any memory.
This further means that what has occurred in the past cannot be utilized for prediction of the future in any meaningful manner. This is the reason why favour in the article is given to the random walks theory of stock prices. The random walks theory within the prices of stock involves 2 distinct hypotheses. First is successive changes in prices has independence and secondly, the changes in price have conformance to certain distribution of probability. The hypothesis has been discussed in this article independently. When reading the paper, there is clarity on the fact that the paper has offered enormous and strong support for random walk hypothesis. However, within business and research by economists, it is not possible for one to claim that a hypothesis has been established without any doubt (Fama, 1965). Always there are more tests that can be done either tending towards hypothesis validity confirmation or previously obtained results opposition. Within the final paper paragraphs, the paper indulged in suggesting certain directions for future research.