They make for entertaining lunch seminars but offer little in the way of a theoretical alternative to die efficient-market hypothesis
, the dominant paradigm in asset pricing since the 1970s.
The 'efficient-market hypothesis
' says, 'asset prices fully reflect all available information.' The stock price already reflects corporate value unless there is some secret information.
Appendix 2 Chamber event results for the efficient-market hypothesis
test Date AR Test t RAA Test t 4/13/2016 0.0083 1.0345 0.0083 0.3891 4/14/2016 -0.0036 -0.4498 0.0047 0.2199 4/15/2016 0.0068 0.8536 0.0115 0.5410 4/18/2016 0.0005 0.0601 0.0120 0.5636 4/19/2016 0.0062 0.7748 0.0182 0.8550 4/20/2016 0.0012 0.1449 0.0194 0.9095 4/22/2016 -0.0074 -0.9186 0.0120 0.5640 Note: The lines in italics correspond to the event t = 0.
The concept of Efficient-Market Hypothesis
(EMH) was introduced by Eugene Fama in 1960.
"The Efficient-Market Hypothesis
and the Financial Crisis." In Alan S.
This theory is consistent with the efficient-market hypothesis
. In finance, this theory is mainly linked by the name of Eugene Fama (1965), even if Burton Malkiel (1973) is considered to have strongly developed it.
To appreciate Halliburton's first argument, some background on efficient-market hypothesis
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.
For less efficient markets, such as emerging market equities, managers showed far higher first-quartile-to-first-quartile persistence-about 50% from 2009 through 2012.*Eugene Fama, Ph.D., is often considered the father of the efficient-market hypothesis
Malkiel, for example, took apart Silver's efficient-market hypothesis
.) Point taken: we needn't (and perhaps shouldn't) be experts to enjoy the broader contours of Silver's book.
On the Efficient-Market Hypothesis
and stock exchange game model, Expert Systems with Applications 37(8): 5673-5681.
One argument for buy-and-hold is the efficient-market hypothesis
: If every security is fairly valued at all times, then there is no point to trade.