Sentences with phrase «efficient market theory makes»

Efficient market theory makes several forecasts, some of which are borne out in practice, such as it is hard to earn speculative profits, and there is little or no opportunity for risk - free arbitrage profit.

Not exact matches

One of the most fundamental ideas of finance theory is the notion that the stock market is «efficient,» making superior performance virtually impossible.

again, not a snark, because efficient market theory states its impossible to beat the market with professional experience (making it mostly worthless in the long term), but in the short term, luck can kill efficient market theory.

The Efficient Market Hypothesis (EMH) is a controversial theory that states that security prices reflect all available information, making it fruitless to pick stocks (this is, to analyze stock in an attempt to select some that may return more than the rest).

Buy - and - Hold makes a call on this but the call is hidden and not rooted in a rational assessment (it was rooted in a rational assessment in the days when serious people believed in the Efficient Market Theory, but those days are long gone).