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 ...
The Efficient Market Hypothesis claims that arbitrage by "smart money" in the market pushes prices towards their informationally efficient values, i.e., values that reflect "all available information.
We know that U.S. equity futures and S&P 500 index prices track each other very closely, so clearly arbitrage occurs. Today, using low latency data, we identify large amounts of the value in the S&P ...
(Photo by Tian Ye/Visual China Group via Getty Images) “When people look at this, they look for fundamental reasons to explain it, but there are no fundamental reasons.” - A Professor of Finance at ...