3 ms·
As a fan of the EMH.. It is a model. All models are wrong. Some are useful. The EMH is very useful. For example, a good understanding of its failure modes can
by mellavora 6y ago
As a fan of the EMH..
It is a model. All models are wrong. Some are useful.
The EMH is very useful. For example, a good understanding of its failure modes can lead to opportunities for profit. You list a few potential failure modes.
or an understanding that "efficiency" depends on diffusion of information, thus when information has uneven diffusion times-- an efficient market still allows for information-diffusion arbitrage.