Defending the Efficient Market Hypothesis

The efficient market hypothesis (EMH) posits that market prices accurately reflect all available information. There are three forms of the EMH: weak, semi-strong, and strong. Each form supposes different sets of information that are fully reflected in market prices. The weak EMH information set consists of historical prices, the semi-strong form includes all publicly available information, and the strong form encompasses information privately held by individual investors or groups.

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