Behavioral finance has been the leading challenger to the
efficient markets hypothesis, but the academics reply that behavioral anomalies are not an integrated
theory that can explain everything, like the EMH, and its offspring like
mean variance analysis, the capital asset pricing model, and their cousins.
The term «adaptive
markets» refers to the multiple roles that evolution plays in shaping human behavior and financial markets, and «hypothesis» is meant to connect and contrast this framework with the Efficient Markets Hypothesis, the theory adopted by the investment industry and most finance aca
markets» refers to the multiple roles that evolution plays in shaping human behavior and financial
markets, and «hypothesis» is meant to connect and contrast this framework with the Efficient Markets Hypothesis, the theory adopted by the investment industry and most finance aca
markets, and «hypothesis» is
meant to connect and contrast this framework with the
Efficient Markets Hypothesis, the theory adopted by the investment industry and most finance aca
Markets Hypothesis, the
theory adopted by the investment industry and most finance academics.
Yet I often hear criticism of
market - cap weighting, presumably because modern portfolio
theory (MPT) postulates a hypothetical
market portfolio as
efficient in the
mean - variance sense.