Financial Theory

18 Topics Badly Explained by ManyFinanceProfessors ArXiv ID: ssrn-3270268 “View on arXiv” Authors: Unknown Abstract This paper addresses 18 finance topics that are badly explained by many Finance Professors. The topics are: 1. Where does the WACC equation come from?<b Keywords: WACC, Capital Structure, Corporate Valuation, Financial Theory, Equities Complexity vs Empirical Score Math Complexity: 4.5/10 Empirical Rigor: 1.0/10 Quadrant: Philosophers Why: The paper focuses on conceptual explanations and critiques of standard finance formulas (e.g., WACC, equity premium) with moderate mathematical density but no empirical data or backtesting, aligning with a philosophical discourse on theory. flowchart TD Q["Research Question How do many Finance Professors explain the WACC equation?"] M["Methodology Comparative Analysis of 18 Topics"] D["Data & Inputs 18 Finance Topics Specifically: WACC Derivation"] C["Computational Process Analyze Theoretical Foundations & Mathematical Derivation"] F["Key Findings & Outcomes WACC equation roots in Modigliani-Miller Optimal capital structure theory Clarification of 18 misexplained topics"] Q --> M M --> D D --> C C --> F

The Adaptive Markets Hypothesis: Market Efficiency from an Evolutionary Perspective ArXiv ID: ssrn-602222 “View on arXiv” Authors: Unknown Abstract One of the most influential ideas in the past 30 years is the Efficient Markets Hypothesis, the idea that market prices incorporate all information rationally a Keywords: Efficient Markets Hypothesis, Market Efficiency, Asset Pricing, Informational Efficiency, Financial Theory, Equity Complexity vs Empirical Score Math Complexity: 3.0/10 Empirical Rigor: 2.0/10 Quadrant: Philosophers Why: The paper proposes a conceptual framework (Adaptive Markets Hypothesis) to reconcile EMH and behavioral finance using evolutionary principles, but it lacks mathematical derivations, empirical data, or backtesting details, focusing instead on theoretical exposition and implications for practice. flowchart TD A["Research Goal: Challenge EMH with Evolutionary Perspective"] --> B["Methodology: Literature Review & Theoretical Framework"] B --> C["Input Data: Historical Market Anomalies & Behavioral Studies"] C --> D["Process: Adaptive Markets Hypothesis Integration (Lo 2004)"] D --> E["Key Findings: 1. Markets are adaptive 2. Efficiency varies 3. Profit opportunities fluctuate with evolution"]