How is the argument made here a reflection of the random wal

How is the argument made here a reflection of the random walk hypothesis? What would you have to forecast correctly to consistently earn high profits from investing in stock?

Solution

Random walk hypothesis is a hypothesis made in financial markets where it is believed that market prices of stocks change randomly like a random walk and hence can not be predicted i.e future stock prices cannot be predicted based on past prices and allows for a random component to seep in the prices. It is in coherence with the efficient market hypothesis where it is believed that efficient markets are random in nature. One has to assume additional risk to earn high profits from investing in stocks