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It doesn't assume the Effiecient Market hypothesis - empirical studies of returns support random returns without the imposing a model (non-parametric tests). T
by dandermotj 10y ago
It doesn't assume the Effiecient Market hypothesis - empirical studies of returns support random returns without the imposing a model (non-parametric tests).
That's not to say returns are actually random, but in any given time range, it appears to be.
- matheweis 10y agoEMH and random walk theory are intrinsically linked; you can't have one without the other... Or are you saying that movements aren't actually random, and only appear to be?
- dandermotj 10y agoThe latter