Meaning EFFICIENT MARKET HYPOTHESIS: States that all relevant information is fully and immediately reflected in a security's market price, thereby assuming that an investor will obtain an equilibrium rate of return. In other words, an investor should not expect to earn an abnormal return (above the market return) through either technical analysis or fundamental analysis. Three forms of efficient market hypothesis exist: weak form (stock prices reflect all information on past prices), semistrong form (stock prices reflect all publicly available information), and strong form (stock prices reflect all relevant information including insider information)
More terms such as Efficient Market Hypothesis in Dictionary E.
- Definition Ex Post Return:
- Examples Related: Holding-period return efficient market hypothesis definition.
- Definition Eligible Bankers' Acceptances:
- Examples an acceptance may be referred to as eligible because it is acceptable by the Fed as collateral at the discount window and/or because the accepting bank can sell it without incurring a reserve efficient market hypothesis explain.
- Definition Economies Of Scope:
- Examples Scope economies exist whenever the same investment can support multiple profitable activities less expensively in combination than separately efficient market hypothesis what is.
- Definition E:
- Examples Fifth letter of a Nasdaq stock symbol specifying that an issue has not met the reporting date for the company's SEC regulatory filing requirements efficient market hypothesis meaning.
- Definition Economic Income:
- Examples Cash flow plus change in present value efficient market hypothesis abbreviation.
