Discover what makes markets informationally efficient, explore Eugene Fama's efficient market hypothesis, and understand the key criticisms of this concept.

The efficient market hypothesis is based on the notion that prices for securities or assets in a market are always reflective of all information available to investors. The efficient market hypothesis ...

Weak form market efficiency is a concept that suggests past stock prices and trading volumes do not predict future stock prices. In a weak form efficient market, all historical information is already ...

The return on equity and its more expansive variant, the return on invested capital, measure what a company is making on the capital it has invested in business, and is a measure of business quality.

The Efficient Market Hypothesis [EMH] began its intellectual life in the mid-1960s with bold positive claims: 1. The market price reflects all available information. 2. The market price represents the ...

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 ...