Discover what makes markets informationally efficient, explore Eugene Fama's efficient market hypothesis, and understand the key criticisms of this concept.

The famed efficient market hypothesis, or EMH, is widely accepted by academics and modern investors. The hypothesis states that stock prices reflect all available information at any given time, making ...

The efficient market hypothesis theory states that the market prices securities fairly and efficiently, and investors are unable to outperform the market consistently. Moreover, EMH theory proposes ...

Weak form market efficiency is a concept that suggests past stock prices and trading volumes do not predict future stock prices. In a weak form efficient market, all historical information is already ...

I began this article with the goal of addressing an academic notion, the efficient-market hypothesis, or EMH. My research dissuaded me. In one University of Chicago article, a faculty member questions ...

The return on equity and its more expansive variant, the return on invested capital, measure what a company is making on the capital it has invested in business, and is a measure of business quality.

The Efficient Market Hypothesis [EMH] began its intellectual life in the mid-1960s with bold positive claims: 1. The market price reflects all available information. 2. The market price represents the ...

The April 11 issue ofMoney Managementfeatured Robert Keavney’s Messenger article. While I respect Robert, I am afraid that his article could produce many misunderstandings of Efficient Market Theory ...