Understanding the Efficient Market Hypothesis: Are Asset Prices Truly Accurate? 📈

The #efficient #market hypotheses is a #theory that says #asset #prices #reflect all #available #information and that #assets are correctly priced. If #true, #technicalanalysis, #fundamentalanalysis and even #private #insiderknowledge will not #enable #anyone to #outperform the #market. #Unfortunately, the underlying #assumptions are unrealistic. In addition, the empirical #evidence suggests that the theory does not reflect #reality at all times. Consequently, different #levels of the theory have been proposed. The weak form indicates that past prices or technical analysis it not #useful. The semi-strong form indicates that #public information or fundamental #analysis is not useful. The #strong form #originall theory) indicates that private or #insider information is not useful. #investing #marketresearch #investingstrategy #trading #cfainstitute #caia #frm