 In this section, I will be talking about a very interesting phenomenon of the stock prices and that is the random walk. So, random walk basically, we have borrowed from the conometric and we see that when we plot the fluctuations of the stock prices over time, so sometimes we observe that the stock prices follow a pattern which can be called as or can be termed as random walk. Random walk means that if you are monitoring or analysing any stock of tomorrow over time, then you cannot predict the price of a certain stock of tomorrow. You cannot analyse it. For example, if any stock is of 60 rupees, then tomorrow it will be of 60 rupees, it will be of 55 rupees, it will be of 65 rupees or it will be of 104 rupees. You cannot predict this particular thing. If this is the case, then we say that the stock prices are following the pattern of random walk. Random walk means that, for example, a person is walking and the left foot of the right foot cannot predict the next step. If you cannot predict the next step, next value of the stock, next price of the stock, then it means that we are observing the behavior of random walk in the stock prices or the pattern of random walk. So it has been observed that when we analyze the stock prices over time in different markets, then we get to see a pattern of random walk. That means that every next value of that stock price is random, cannot be predicted, cannot be assessed. So it can go up, it can go down, it can remain at the same time. So this is one of the implications of the efficient market hypothesis which we have just discussed. That when we look at the stock prices in your stock markets, then we are assuming that they follow the random walk pattern. So when we observe and analyze the stock prices over time, they approximately follow the random walk pattern. And the future changes, as I have just said, that in the future, after 3 months or after 3 months, the price of any stock becomes unpredictable. This means that if we assume that the financial markets are working perfectly efficiently according to the efficient market hypothesis, then the stock prices show the pattern of random walk and represent it. And on the basis of this, you cannot predict the value of any stock price in the future. To further explain this particular thing, I am taking the example of Pakistan stock market. And if we observe Pakistan's stock market, then we can see that from 1992 till now, we have seen more than 11% growth rate of overall stock market indicators. I have taken the value of US Dollar. In that, we can see that your growth above 11% has been achieved in Pakistan stock market. And secondly, I will show you a pattern now. You can see how the random walk is. And I have taken the data of our local Pakistan stock exchange. So when we want to understand the performance of the stock market, that is why we have various indicators. In which we have KMI 30, KSC 100, and different indices of the stock market. For example, we have seen that since 1992, our stock market has been considerably growing in Pakistan. And when we analyze the performance of the stock market, that is KSC 100, it has been observed that from the beginning of 2021 till now, it has grown by 8.92%. Which means in a very short period, there has been a considerable growth in terms of KSC 100. So this is an illustration of the random walk behavior of stock prices. And for that, I have taken the data of KSC 100. And you can see the data. This particular pattern shows that there is a significant improvement in the value of KSC 100 over a long period of time. And one more thing that you have to see in this, as I have also told you, that when we talk about the random walk, it means that the price of a certain point is not enough to predict that your price will fall over the next time period or increase or more or less remain there. So you can see that in this whole time period, there have been fluctuations throughout. You can see that sometimes we see an upward movement, then it has gone down completely, then there is an upward movement and then you get to see a decline. Then there are no more or less big fluctuations here. But there is a very big decline. So this particular behavior indicates that although we see an upward trend, as I have told you from 1992, till now we have grown more than 11% of the stock market. We are also getting an upward trend. But at the same time, if you look at it carefully, if you analyze it over any time period, then you get to observe the behavior of a random walk. So this is what efficient market hypothesis says that the stock prices, they are unpredictable for future prices. You don't know where the next value will go. And this particular phenomenon can be verified based upon these values of the KSE 100, which have been taken to show you that how actually the random walk behavior of stock prices can be observed.