Efficient Markets Hypothesis
Efficient Markets Hypothesis ArXiv ID: ssrn-991509 “View on arXiv” Authors: Unknown Abstract The efficient markets hypothesis (EMH) maintains that market prices fully reflect all available information. Developed independently by Paul A. Samuelson and Eu Keywords: Efficient Markets Hypothesis (EMH), Market Prices, Information Efficiency, Asset Pricing, Equities Complexity vs Empirical Score Math Complexity: 2.0/10 Empirical Rigor: 3.0/10 Quadrant: Philosophers Why: The paper is a theoretical review of the Efficient Markets Hypothesis with only basic statistical tests and no backtesting or code, focusing on conceptual foundations rather than mathematical derivation or empirical implementation. flowchart TD A["Research Goal: Test if asset prices fully reflect all available information."] --> B{"Methodology: Event Study Analysis"} B --> C["Data/Inputs: Historical price data and public news announcements for equities."] C --> D["Computational Process: Calculate abnormal returns and analyze post-announcement price drift."] D --> E{"Key Findings/Outcomes"} E --> F["Prices adjust rapidly to new information."] E --> G["Predicting future price movements using past data is difficult."] E --> H["Supports the Efficient Markets Hypothesis (EMH)."]