market efficiency


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Related to market efficiency: Efficient market hypothesis

Market Efficiency

The extent to which the price of an asset reflects all information available. Economists disagree on how efficient markets are. Followers of the efficient markets theory hold that the market efficiently deals with all information on a given security and reflects it in the price immediately, and that technical analysis, fundamental analysis, and/or any speculative investing based on those methods are useless. On the other hand, the primary observation of behavioral economics holds that investors (and people in general) make decisions on imprecise impressions and beliefs, rather than rational analysis, rendering markets somewhat inefficient to the extent that they are affected by people.

market efficiency

References in periodicals archive ?
The uncovered interest-rate parity(UIP) represents the cornerstone parity condition for testing foreign exchange market efficiency.
Commenting on the report's findings, Saqr Gobash, Labor Minister, says: "the advanced positions attained by the UAE in the area of labor market efficiency reflects the political leadership's vision for providing a sustainable and stable labor market based on the realization of a balanced relationship between the rights and responsibilities of the bilateral production process i.