Summary: Are markets efficient? Photo: Ralf Roletschek. Source: Wikimedia Commons. CC-BY-SA 3.0 When I was studying finance, one of the most hotly debated notions was the Efficient Market Hypothesis. It’s like salsa: in comes in mild, medium, and strong forms, and everyone has an opinion – they like it, they hate it, they base multi-billion dollar businesses on it. At its heart, the Efficient Market Hypothesis says that markets incorporate information into their pricing mechanism. It’s hard to […]
