efficient-market hypothesis


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efficient-market hypothesis

the proposition that all available information which may influence the price of a FINANCIAL SECURITY is reflected in its current market price because financial markets are ‘efficient’ in adjusting prices to information. If markets are indeed efficient it is impossible for an investor to consistently predict how the price of any particular financial security is likely to change and thus outguess the market.
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The concept of Efficient-Market Hypothesis (EMH) was introduced by Eugene Fama in 1960.
Testing the weak form of efficient market hypothesis in carbon efficient stock indices along with their benchmark indices in select countries
This theory is consistent with the efficient-market hypothesis.
Romanian capital market: Random walk or weak form of inefficiency?
To appreciate Halliburton's first argument, some background on efficient-market hypothesis is helpful.
After Halliburton, Back to basics? A supreme court decision will impact modern securities class action and directors and officers coverage in the years to come
Second, the assumption that selling shares in a company will depress its share price is contrary to the efficient-market hypothesis, or at least involves a degree of circular reasoning.
Performance strategy: because a firm's stakeholders can't rely on market forces to ensure that its managers act in the interests of the majority, various external control systems have emerged. But which approach to governance works best?
is often considered the father of the efficient-market hypothesis.
Predicting Performance
Malkiel, for example, took apart Silver's efficient-market hypothesis.
The Signal and the Noise
On the Efficient-Market Hypothesis and stock exchange game model, Expert Systems with Applications 37(8): 5673-5681.
Research on futures trend trading strategy based on short term chart pattern
Event studies rest on the efficient-market hypothesis, which states that any event that affects the future profitability of a firm is immediately reflected in the firm's security prices.
Legitimacy: a social explanation for the market response to index reconstitution
Even the most ardent defenders of the efficient-market hypothesis were usually more subtle in their verbal presentations, but this nuance was glossed over owing to the primacy placed on the formal model for assessment.
What happened to "efficient markets"?
Cohen, Polk, and Vuolteenaho measure the ability of the capital asset pricing model (CAPM) and the efficient-market hypothesis to explain the level of stock prices.
Asset Pricing. (Conferences)
The arbitrage-free, efficient-market hypothesis implies [lnY.
Relevant distributions for insurance prices in an arbitrage free equilibrium
The efficient-market hypothesis, which is also covered in the P3 syllabus (although it's more usually considered part of F3), suggests that most real markets are likely to be at least "semi-strong efficient".
Paper P3 performance strategy: typically, P3 focuses on dealing with the downside risks facing a business, but arbitrage--a method of making near-riskless upside gains--is a potentially important element of performance strategy, too

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