Macro · Structures & Institutions Stub 1970

Efficient Market Hypothesis

효율적 시장 가설 (EMH)

A cornerstone financial economics theory asserting that financial asset prices fully reflect all available information, making it impossible to consistently achieve returns exceeding average market returns on a risk-adjusted basis.

Field Economics · Management
Level of analysis Macro · Structures & Institutions
Paradigm Rational Choice
Key figures 👤 Eugene Fama (유진 파마)
Year 1970

Key Claims

Eugene Fama categorized market efficiency into weak, semi-strong, and strong forms based on the incorporation of historical, public, and private information. Because prices adjust instantaneously to new random information, stock prices follow a random walk, precluding systematic alpha.

Further Reading

  • Fama, E. F. (1970). Efficient capital markets: A review of theory and empirical work. Journal of Finance, 25(2), 383–417.

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