Semi-strong market efficiency: Difference between revisions
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One form of the Efficient Market Hypothesis (EMH). | One form of the Efficient Market Hypothesis (EMH). | ||
The EMH is the general hypothesis that markets operate efficiently. In other words that assets are fairly priced by the market mechanism to incorporate available information. | The EMH is the general 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. | ||
The semi-strong form 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 semi-strong form 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. | ||
== See also == | == See also == | ||
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* [[Strong form efficiency]] | * [[Strong form efficiency]] | ||
* [[Weak form efficiency]] | * [[Weak form efficiency]] | ||
Revision as of 11:43, 20 August 2013
One form of the Efficient Market Hypothesis (EMH).
The EMH is the general 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.
The semi-strong form 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.
