Efficient market hypothesis - Revision history

imported>Doug Williamson: Add link.

2022-02-24T15:15:39Z

Add link.

← Older revision		Revision as of 15:15, 24 February 2022
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	* [[Efficiency]]		* [[Efficiency]]
	* [[Efficient market]]		* [[Efficient market]]
			* [[Fair market]]
	* [[Fractal markets hypothesis]]		* [[Fractal markets hypothesis]]
	* [[Interest rate parity]]		* [[Interest rate parity]]

imported>Doug Williamson: Add link.

2021-07-23T08:30:13Z

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← Older revision		Revision as of 08:30, 23 July 2021
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	== See also ==		== See also ==
	* [[Asymmetry of information]]		* [[Asymmetry of information]]
			* [[Closed period]]
	* [[Dislocation]]		* [[Dislocation]]
	* [[Efficiency]]		* [[Efficiency]]

imported>Doug Williamson: Add link.

2021-01-06T22:39:55Z

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← Older revision		Revision as of 22:39, 6 January 2021
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	* [[No free lunch]]		* [[No free lunch]]
	* [[Perfect competition]]		* [[Perfect competition]]
			* [[Random walk]]
	* [[Semi-strong market efficiency]]		* [[Semi-strong market efficiency]]
	* [[Strong form efficiency]]		* [[Strong form efficiency]]

imported>Doug Williamson: Add link.

2020-04-22T01:32:15Z

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← Older revision		Revision as of 01:32, 22 April 2020
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	== See also ==		== See also ==
	* [[Asymmetry of information]]		* [[Asymmetry of information]]
			* [[Dislocation]]
	* [[Efficiency]]		* [[Efficiency]]
	* [[Efficient market]]		* [[Efficient market]]

imported>Doug Williamson: Layout.

2019-12-24T15:59:46Z

Layout.

← Older revision		Revision as of 15:59, 24 December 2019
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	(EMH).		(EMH).

	The hypothesis that markets operate efficiently; that assets are fairly priced by the market mechanism to incorporate available information.		The efficient market hypothesis that markets operate efficiently. In other words, that assets are fairly priced by the market mechanism to incorporate available information.

	There are three forms of potential efficiency: the weak form, the semi-strong form and the strong form.		There are three forms of potential efficiency: the weak form, the semi-strong form and the strong form.
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	* [[Strong form efficiency]]		* [[Strong form efficiency]]
	* [[Weak form efficiency]]		* [[Weak form efficiency]]

			[[Category:The_business_context]]
			[[Category:Identify_and_assess_risks]]
			[[Category:Manage_risks]]
			[[Category:Risk_frameworks]]
			[[Category:Risk_reporting]]
			[[Category:Financial_products_and_markets]]

imported>Doug Williamson: Reorder links.

2017-07-23T08:48:41Z

Reorder links.

← Older revision		Revision as of 08:48, 23 July 2017
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	* [[Efficiency]]		* [[Efficiency]]
	* [[Efficient market]]		* [[Efficient market]]
			* [[Fractal markets hypothesis]]
	* [[Interest rate parity]]		* [[Interest rate parity]]
	* [[No free lunch]]		* [[No free lunch]]
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	* [[Strong form efficiency]]		* [[Strong form efficiency]]
	* [[Weak form efficiency]]		* [[Weak form efficiency]]
	* [[Fractal markets hypothesis]]

imported>Doug Williamson: Add link.

2016-11-01T08:27:18Z

Add link.

← Older revision		Revision as of 08:27, 1 November 2016
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	* [[Efficient market]]		* [[Efficient market]]
	* [[Interest rate parity]]		* [[Interest rate parity]]
			* [[No free lunch]]
	* [[Perfect competition]]		* [[Perfect competition]]
	* [[Semi-strong market efficiency]]		* [[Semi-strong market efficiency]]

imported>Doug Williamson: Add link.

2016-03-28T16:44:19Z

Add link.

← Older revision		Revision as of 16:44, 28 March 2016
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	== See also ==		== See also ==
			* [[Asymmetry of information]]
	* [[Efficiency]]		* [[Efficiency]]
	* [[Efficient market]]		* [[Efficient market]]

imported>Doug Williamson: Spacing.

2013-08-28T16:35:02Z

Spacing.

← Older revision		Revision as of 16:35, 28 August 2013
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	(EMH).		(EMH).

	The hypothesis that markets operate efficiently; that assets are fairly priced by the market mechanism to incorporate available information. There are three forms of potential efficiency: the weak form, the semi-strong form and the strong form.		The hypothesis that markets operate efficiently; that assets are fairly priced by the market mechanism to incorporate available information.

			There are three forms of potential efficiency: the weak form, the semi-strong form and the strong form.

	#The <u>weak form</u> states that past prices are no guide to future prices, so charting techniques cannot be used to make excess returns.		#The <u>weak form</u> states that past prices are no guide to future prices, so charting techniques cannot be used to make excess returns.

imported>Doug Williamson: Numbering & add reference to Fractal Market Hypothesis.

2013-08-28T12:34:10Z

Numbering & add reference to Fractal Market Hypothesis.

← Older revision		Revision as of 12:34, 28 August 2013
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	The hypothesis that markets operate efficiently; that assets are fairly priced by the market mechanism to incorporate available information. There are three forms of potential efficiency: the weak form, the semi-strong form and the strong form.		The hypothesis that markets operate efficiently; that assets are fairly priced by the market mechanism to incorporate available information. There are three forms of potential efficiency: the weak form, the semi-strong form and the strong form.

	The <u>weak form</u> states that past prices are no guide to future prices, so charting techniques cannot be used to make excess returns.		#The <u>weak form</u> states that past prices are no guide to future prices, so charting techniques cannot be used to make excess returns.
			#The <u>semi-strong form</u> states that prices react to public information so that any form of analysis using publicly available information cannot be successful in consistently generating excess returns.
			#The <u>strong form</u> states that even insider information cannot generate consistent excess returns.

	The <u>semi-strong form</u> states that prices react to public information so that any form of analysis using publicly available information cannot be successful in consistently generating excess returns.

	~~The <u>strong form</u> states that even insider information cannot generate consistent excess returns.~~

	Important implications of the efficient market hypothesis for financial managers include:		Important implications of the efficient market hypothesis for financial managers include:
	o Keeping the financial markets well-informed.		* Keeping the financial markets well-informed.
	o Taking market price movements seriously.		* Taking market price movements seriously.
	o Not attempting to 'fine tune' the timing of security issues.		* Not attempting to 'fine tune' the timing of security issues.

	Also known as the Efficient markets hypothesis.		Also known as the Efficient markets hypothesis.


			In practice, extreme market outturns occur more commonly than predicted by simple efficient markets theory.

			As a consequence, the simplistic application of efficient markets theory to risk analysis will systematically:
			* Overstate market stability, and
			* Understate related market risks.


	== See also ==		== See also ==
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	* [[Strong form efficiency]]		* [[Strong form efficiency]]
	* [[Weak form efficiency]]		* [[Weak form efficiency]]
			* [[Fractal markets hypothesis]]