Strong form efficiency: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Administrator (CSV import) |
imported>Doug Williamson m (Spacing 20/8/13) |
||
| Line 1: | Line 1: | ||
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. The strong form states that analysis of public knowledge and even insider information cannot generate consistent excess returns. | There are three forms of potential efficiency: the weak form, the semi-strong form and the strong form. | ||
The strong form states that analysis of public knowledge and even insider information cannot generate consistent excess returns. | |||
== See also == | == See also == | ||
| Line 8: | Line 12: | ||
* [[Semi-strong market efficiency]] | * [[Semi-strong market efficiency]] | ||
* [[Weak form efficiency]] | * [[Weak form efficiency]] | ||
Revision as of 08:30, 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 strong form states that analysis of public knowledge and even insider information cannot generate consistent excess returns.
