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Who believes in the strong version of efficient market hypothesis anyways? One of the most interesting paradoxes of efficient markets is that to have efficient
by furtivefelon 17y ago
Who believes in the strong version of efficient market hypothesis anyways? One of the most interesting paradoxes of efficient markets is that to have efficient market, you must have people in the market who doesn't believe in efficient markets. There are a lot of them (the entire field of arbitrage is based on the hypothesis that market is not efficient)
- jplewicke 17y agoAlternatively, you can have a market where the prices fluctuates but no one ever trades. See http://en.wikipedia.org/wiki/No-trade_theorem http://en.wikipedia.org/wiki/No-trade_theorem .