Sentences with phrase «assumes efficient markets»

So, it is easier to assume efficient markets because without that assumption, you can't do the math.

When the company doesn't pay a dividend the money stays within the company and therefore the company is worth more, which will be reflected in the share price (assuming efficient markets).

MCT is summarized by William F. Sharpe, a Nobel laureate and typical efficient - market believer, when he stated in the third edition of his book, Investments, that if you assume an efficient market, «every security's price equals its investment value at all times» (page 67).

If there were no other costs to fossil fuels, then assuming an efficient market, the gradual switch from fossil fuel to alternatives and greater efficiency would procede in an optimal fashion.

Not exact matches

Moreover, if we accept that the effective and efficient functioning of our stock markets assumes that investors have access to any relevant information that can affect an organization's financial performance, information about senior leaders» mental health can no longer legitimately be withheld.

In light of the meltdown of our financial markets, I would have naturally assumed that the theory of efficient markets would have been banned forever from our programme. Alas, this was not to be.

This assumes that markets are not efficient i.e. based purely on fundamental data and as such psychology and social sciences are better served at explaining what is going on.

[Geeks note: To get an efficient market, assume that all traders are rational; the sort of statistical rationality that would lead everyone to interpret the same information the same way, assume that it's common knowledge they're rational (so you know that I know that you know that I'm rational, etc), that all investors» risk preferences are constant, and the only motive for trading is an expected profit.

First, your entire response is predicated on assuming that the Efficient Market Hypothesis is correct.

But if markets are not efficient there is no reason to assume they are.

Here are some arguments for active investing: 1) To assume that active investing is always inferior, you would need to conclusively prove the efficient market hypothesis.

Academics assume day over day returns have little to do with each other and that markets are more or less efficient.

³ Efficient market theories also assume markets are frictionless — no transaction costs — and that «competition will cause the full effects of new information on intrinsic value to be reflected «instantaneously» in actual prices.»

Only fools and the models of some economists assume markets are «always» efficient instead of «often» efficient.

Indeed, most financial products available to the investors today tacitly assume the sanctity of the Efficient Market Hypothesis.

The theory assumes that investors are rational and that markets are efficient.

In a recent working paper, we simulated how the proposed rule would affect energy market outcomess and social welfare, assuming that it does not harm the efficient functioning of markets in ways beyond the subsidization of certain plants.

Although newer vehicles will be more fuel efficient, CO2 emissions continue to rise because of the growth in vehicle travel and the increase in congestion and because we have not assumed carbon neutrality for new dwellings as these have yet to be achieved in mass market building.

It seems not unreasonable to assume that survival value in our cultural evolution will favor institutions which support the most efficient Knowledge Markets (organisms which support the most efficient nervous systems).