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Coin Tosses and Stock Price Charts
The article demonstrates randomness in stock price movements using an Excel simulation inspired by A Random Walk Down Wall Street by Burton Malkiel. It starts with a simple model based on coin tosses, where a "head" causes the price to rise and a "tail" causes it to fall, mimicking the unpredictability of markets. The article then uses geometric Brownian motion for more realistic modeling. Excel functions and VBA are employed to generate data and create high-low-close stock charts, showing that many technical patterns can emerge purely from random processes.