151164591
commented on
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.
If the market is inefficient, it's possible for active managers to outperform the stock market by picking the "good stocks" and staying away from the ...
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.
If the market is inefficient, it's possible for active managers to outperform the stock market by picking the "good stocks" and staying away from the ...
15
4
151164591 : Price can not be fully reflected, because time and space need to be transmitted. The market will eventually reflect the information, but it takes a process. This provides room for speculation.