Section 3
Market Efficiency
Book
Version 3
By Boundless
By Boundless
Boundless Finance
Finance
by Boundless
3 concepts
Behavior of an Efficient Market
Efficient-market hypothesis (EMH) asserts that financial markets are informationally efficient and should therefore move unpredictably.
The Efficient Market Hypothesis
The EMH asserts that financial markets are informationally efficient with different implications in weak, semi-strong, and strong form.
Implications and Limitations of the Efficient Market Hypothesis
The limitations of EMH include overconfidence, overreaction, representative bias, and information bias.