The Theory of Efficient Markets
Lecture no. 5 from the course: Advanced Investments
Taught by Professor Steve L. Slezak | 31 min | Categories: The Great Courses Plus Online Economics & Finance Courses
Is it possible to make money by actively trading in the market? According to the efficient markets hypothesis, you are better off as a passive investor, because prices almost always reflect true value. Explore three versions of this theory, including the weak form, which holds that prices follow what is called a random walk.