About this document
Efficient Market Dynamics and Pricing by zulfi007 is a document available to read on EtoBox.
This document summarizes the efficient market hypothesis. It describes how security prices are determined by the interaction of supply and demand in the market. An efficient market is one where security prices instantly reflect all available information, making it impossible for investors to earn abnormal returns. The Fama market model formalizes this, stating that expected returns are based only on known information and security price changes follow a random walk.
- Author
- zulfi007
- Language
- EN