osmarks/documentation
1
0
Fork 0
Code Issues Pull Requests Releases Wiki Activity

Create ‘efficient_market_hypothesis’

Browse Source
This commit is contained in:
osmarks 2024-06-16 16:48:26 +00:00 committed by wikimind
parent 5db28d5136
commit eceef777d6
1 changed files with 1 additions and 0 deletions
Show Stats Download Patch File Download Diff File Expand all files Collapse all files

1
efficient_market_hypothesis.myco Normal file
View File

@ -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.