随机漫步理论有两种截然不同的模式，在这两种模型中，数据或信息的快速合并对分析师和投资者都是不利的。来自公众的信息不会帮助分析师或投资者选择被低估的股票，因为市场已经将信息纳入了安全价格(Xu and Zhang, 2014)。
There are two distinct models of the random walk theory, and in both models, the rapid incorporation of the data or information is not beneficial to the analysts and investors. The information gathered from the public will not assist an analyst or investor in selecting undervalued stocks because the market has already incorporated the information into the security price (Xu and Zhang, 2014).
According to the research scholars, who advocates random walk theory addresses that the theory consists of security price alterations with having similar distribution. It also indicates that the security price alterations are not dependent to each other that mean they are independent. Therefore, the previous movement or trend of a security price or market cannot be utilized to forecast its future movement (Zhang and Yang, 2016). As per the concept, the security prices take a random as well as unpredictable way.
According to the supporters of the random walk theory, it is not possible to outperform or break the market without assuming the extra risk. The efficient market hypothesis states that stock prices completely replicate the complete available information and prediction; thus, the actual prices are the best estimation of a firm’s intrinsic value. This would prevent anyone from the exploitation of the mispriced securities in a steady way, as the movements of prices are random and use to be driven by the unforeseen incidents (Dunham, 2013). For this reason, the research scholars who work on this topic advocate the investment in a passively managed well-diversified fund.