Investments

Research: Testing the Efficient Market Hypothesis

Sunday 8th of November 1998

The Efficient Market Hypothesis (EMH) contends that the expected returns from investing are commensurate with the risk assumed – no more, and no less. Discussions of this theory have postulated three forms of efficient market: weak, semi-strong and strong.

Weak EMH
Studies discussing the weak form of EMH have argued that the past history of price information is of no value i...

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