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| (EMH).
| | ''US Pensions''. |
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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.
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| 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.
| | A 1974 US federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans. |
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| 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.
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| The <u>strong form</u> states that even insider information cannot generate consistent excess returns.
| | == See also == |
| | | * [[Pension]] |
| Important implications of the efficient market hypothesis for financial managers include:
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| o Keeping the financial markets well-informed.
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| o Taking market price movements seriously.
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| o Not attempting to 'fine tune' the timing of security issues.
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| Also known as the Efficient markets hypothesis.
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| == See also ==
| | [[Category:Compliance_and_audit]] |
| * [[Efficiency]]
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| * [[Efficient market]]
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| * [[Interest rate parity]]
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| * [[Perfect competition]]
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| * [[Semi-strong market efficiency]]
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| * [[Strong form efficiency]]
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| * [[Weak form efficiency]]
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Revision as of 16:21, 22 January 2014
US Pensions.
(ERISA).
A 1974 US federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans.
See also
