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Which one claims that all actors in a market have perfect information?
by pyre 13y ago
Which one claims that all actors in a market have perfect information?
- icebraining 13y agoI'm guessing parent's talking about Eugene Fama, who shared the prize with Robert Shiller. He doesn't actually claim the markets have perfect information, just that the price always reflects all available information. In essence, you can't "beat the market" consistently, assuming you have the same information.
- cheald 13y ago> assuming you have the same information Which you don't, since Goldman Sachs is always a few milliseconds ahead of everyone else. Given that almost everyone else out there is going to be trading on information that has already been consumed and acted upon by privileged parties, the markets may as well for all intents and purposes be irrational.