From eceef777d6aca2dfd44393c350e2469cf6a189dd Mon Sep 17 00:00:00 2001 From: osmarks Date: Sun, 16 Jun 2024 16:48:26 +0000 Subject: [PATCH] =?UTF-8?q?Create=20=E2=80=98efficient=5Fmarket=5Fhypothes?= =?UTF-8?q?is=E2=80=99?= MIME-Version: 1.0 Content-Type: text/plain; charset=UTF-8 Content-Transfer-Encoding: 8bit --- efficient_market_hypothesis.myco | 1 + 1 file changed, 1 insertion(+) create mode 100644 efficient_market_hypothesis.myco diff --git a/efficient_market_hypothesis.myco b/efficient_market_hypothesis.myco new file mode 100644 index 0000000..0d7eea1 --- /dev/null +++ b/efficient_market_hypothesis.myco @@ -0,0 +1 @@ +The efficient market hypothesis is the statement that asset prices are always correct, in the sense that they never make predictable updates (change in a way predictable in advance from information available in the past). As a corollary, as prices are now attached to a very wide variety of phenomena ([[https://www.cmegroup.com/markets/weather.html|weather]], personal insurance, long-dated options, etc), the market is nigh-[[omniscient]]. The controversial strong-form EMH states additionally that assets are always priced correctly, and thus that [[people]] always make decisions which are in their self-interest. \ No newline at end of file