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> the efficient market hypothesis states that asset prices reflect all current available information. Obviously interpretations of that information could diffe
by grumple 7y ago
> the efficient market hypothesis states that asset prices reflect all current available information.
Obviously interpretations of that information could differ... and some will be right, and some will be wrong.
- smcphile 7y agoSure, individual evaluations of all currently available information can and do differ. The efficient market hypothesis is about the sum total of all those individual evaluations adding up to a rational evaluation as reflected in asset prices. Not everyone believes in the efficient market hypothesis, Warren Buffet being a famous example of someone who does not.
- camelite 7y agoOf course he doesn't. His existence invalidates it.