Random Walk Vs Efficient Market Hypothesis

This problem tests your understanding of how markets are described in finance, especially the difference between a theory about price movement and a theory about how information is reflected in prices. Interviewers like this question because it checks whether you can separate the idea that price changes may be unpredictable from the idea that market prices quickly and fully reflect available information. A strong answer shows you understand the logic behind both concepts, how they relate to forecasting and valuation, and why they matter for investing and trading discussions in capital markets interviews.