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imported>Doug Williamson |
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| (EMH).
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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.
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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.
| | http://en.wikipedia.org/wiki/Wikipedia:Tutorial |
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| 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 ==
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| * [[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 13:31, 9 June 2013
The Treasurer's Wiki is powered by MediaWiki, the same basic platform as powers Wikipedia.
For a tutorial on the mechanics of Editing, follow the external link to Wikipedia's related tutorial page below.
External link
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