--- title: "Meaning & Key Takeaway of: A weakness of the random-walk model lies…" description: "\"A weakness of the random-walk model lies in its assumption of instantaneous adjustment, whereas the information impelling a stock market toward its \"in..." image: "https://sms4smile.com/quotes/i/b5a/richard-arnold-epstein-33354_adjustment_a-weakness-of-the-random-walk-model-lies_1302139.jpg" --- # A weakness of the random-walk model lies in its assumption… ![“A weakness of the random-walk model lies in its assumption of instantaneous adjustment, whereas the information impelling a stock market toward its "intrinsic value" gradually becomes disseminated throughout the market place.” quote by Richard Arnold Epstein](https://sms4smile.com/quotes/i/b5a/richard-arnold-epstein-33354_adjustment_a-weakness-of-the-random-walk-model-lies_1302139.jpg) [Download](https://sms4smile.com/quotes/i/b5a/richard-arnold-epstein-33354_adjustment_a-weakness-of-the-random-walk-model-lies_1302139.jpg) [Open image](https://sms4smile.com/quotes/i/b5a/richard-arnold-epstein-33354_adjustment_a-weakness-of-the-random-walk-model-lies_1302139.jpg) > “A weakness of the random-walk model lies in its assumption of instantaneous adjustment, whereas the information impelling a stock market toward its "intrinsic value" gradually becomes disseminated throughout the market place.” [Richard Arnold Epstein](https://sms4smile.com/quotes/author/richard-arnold-epstein/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. The random-walk model assumes instant price changes, ignoring the slow spread of information that moves markets toward true value. **In simple terms:** Markets don’t adjust instantly; information spreads gradually. Key Takeaway Consider gradual information flow in market analysis. Themes finance economics information theory market behavior Mood analytical critical Type theoretical educational When to use this quote - trading strategy development - risk modeling - investment education Key Concepts random-walk model price discovery information diffusion Questions to Reflect On - How does information speed affect market efficiency? - Can models incorporate delayed adjustments? A Different Perspective Real markets may react faster due to technology. ★ ★ ★ ★ ★ No ratings yet [Adjustment](https://sms4smile.com/quotes/about/adjustment/) [Assumption](https://sms4smile.com/quotes/about/assumption/) [Customer](https://sms4smile.com/quotes/about/customer/) [Impelling Stock](https://sms4smile.com/quotes/about/impelling-stock-4280534/) [Information](https://sms4smile.com/quotes/about/information/) [Information Impelling](https://sms4smile.com/quotes/about/information-impelling-4280533/) [Instantaneous](https://sms4smile.com/quotes/about/instantaneous/) [Intrinsic value](https://sms4smile.com/quotes/about/intrinsic-value/) [Investing](https://sms4smile.com/quotes/about/investing/) [Lying](https://sms4smile.com/quotes/about/lying/) [Market Intrinsic](https://sms4smile.com/quotes/about/market-intrinsic-4280531/) [Models](https://sms4smile.com/quotes/about/models/) [Value Gradually](https://sms4smile.com/quotes/about/value-gradually-4280532/) [Values](https://sms4smile.com/quotes/about/values/) [Walks](https://sms4smile.com/quotes/about/walks/) [Weakness](https://sms4smile.com/quotes/about/weakness/) ## Related quotes > [I'm not convinced that the world is in any worse shape than it ever was. 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