The efficient market hypothesis theory states that the market prices securities fairly and efficiently, and investors are unable to outperform the market consistently. Moreover, EMH theory proposes ...

Learn how behaviorists explain market inefficiencies through human psychology. Discover key concepts in behavioral economics and finance that challenge rational models.

The Efficient Market Hypothesis (EMH) has retreated from bold claims of efficiency to a weaker defense that abandons its original claims. The "nihilist defense" simply asserts most active managers ...

Most people who invest in stocks would like to believe that the market is rational; that is, there’s a rational basis for the price of a stock. They may believe that the price is based on past and ...