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The Efficient Market Hypothesis has been effectively disproven; it was proven that it's equivalent to P=NP, and it's very unlikely that P=NP. In other words, if
by NoGravitas 5y ago
The Efficient Market Hypothesis has been effectively disproven; it was proven that it's equivalent to P=NP, and it's very unlikely that P=NP. In other words, if markets were efficient, we could just use simulated markets to solve NP-hard problems in polynomial time. Not surprisingly, that doesn't work.
- Dylan16807 5y ago> The Efficient Market Hypothesis has been effectively disproven No, the opposite of "effectively". That's like saying you can't plan an effective route because CSP, or you can't use SAT solvers to design things. Markets aren't perfect, and that's all that proof manages to show. They could still be 99.99% accurate based on that logic. It's a cute thought experiment, not something practical.