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Efficient-market hypothesis

The efficient-market hypothesis (EMH) is a hypothesis in financial economics that states that asset prices reflect all available information. A direct implication is that it is impossible to "beat the market" consistently on a risk-adjusted basis since market prices should only react to new information.

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Efficient markets applied in securities class action litigation

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Efficient-market hypothesis

Nodes105
Edges104
Triples77
Avg. degree1.98
Density0.019048
Components1

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Efficient-market hypothesis

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related to EMH anomalies and rejection of the Capital Asset Pricing Model (CAPM) · 23
Efficient-market hypothesis → Additional, CAPM, Early, EMH, Fama-French, FF3, Following GJR's, For, Further, Gibbons, GJR, HML, ILLIQ, Modern Portfolio Theory, MOM, Robert Haugen, Roll's, Ross, See, Shanken
related to 2008 financial crisis · 22
Efficient-market hypothesis → At, By, Economist Paul McCulley, EMH, Financial, Financial Analysts Journal, Financial Times, Former Federal Reserve, Great Recession, In, International Organization, It, Jeremy Grantham, June, Laurence, Market, Martin Wolf, Paul Volcker, Roger Lowenstein, Securities Commissions
related to Criticism · 17
Efficient-market hypothesis → According, Amos Tversky, Behavioral, Berry, Daniel Kahneman, Dreman, Dreman's, Empirical, George Soros, In, Investors, P/E, Paul Slovic, Ray Ball, Richard Thaler, These, Warren Buffett

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Important terminology

market emh hypothesis prices financial theory stock information efficient markets random investors walk risk also empirical model asset returns value

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SubjectPredicateObjectConfidenceSrc
consumption-based asset pricinginstance ofand frameworks0.80text
intermediary asset pricing can be thought of as the combination of a model of risk with the EMHinstance ofand frameworks0.80text
overconfidenceinstance ofBehavioral economists attribute the imperfections in financial markets to a combination of cognitive biases0.80text
overreactioninstance ofBehavioral economists attribute the imperfections in financial markets to a combination of cognitive biases0.80text
representative biasinstance ofBehavioral economists attribute the imperfections in financial markets to a combination of cognitive biases0.80text
information biasinstance ofBehavioral economists attribute the imperfections in financial markets to a combination of cognitive biases0.80text
and various other predictable human errors in reasoninginstance ofBehavioral economists attribute the imperfections in financial markets to a combination of cognitive biases0.80text
information processinginstance ofBehavioral economists attribute the imperfections in financial markets to a combination of cognitive biases0.80text
Daniel Kahnemaninstance ofThese have been researched by psychologists0.80text
Amos Tverskyinstance ofThese have been researched by psychologists0.80text
Paul Slovicinstance ofThese have been researched by psychologists0.80text
economist Richard Thaler.Empirical evidence has been mixedinstance ofThese have been researched by psychologists0.80text

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