Tags » Efficient Market Hypothesis

Monte Carlo Simulation: Application to Financial Markets Part I

Author: Tanya Rawat

The application to financial markets is arguably fairly straight forward.

Monte Carlo Simulation using Geometric Brownian Motion.
We define the path of the price in two parts: drift and volatility. 153 more words


Introduction to Technical Analysis and Fundamental Analysis

Most people have heard of technical analysis and fundamental analysis. Some have probably dabbled in Forex trading in their youth, and as a result might be more comfortable with technical analysis.   874 more words


The History Of EMH

This hypothesis was created by Eugene Fama after his studies on Random Walk Theory. He discovered that random walk- although a significant tool for efficient markets doesn’t help technical analysts to obtain a higher foot hold over others. 958 more words


The surprising reason your eggs will cost more

The most devastating outbreak of bird flu on record has already killed 38.9 million birds, according to a report Friday in The Wall Street Journal, … 102 more words


betterfailling reblogged this on nicichiarasa and commented:

Efficient Market Hypothesis, eh? The proponents of this hypothesis posit that all participants to the market are perfectly rational and that they all have enough pertinent information about what is going on as to be able to reach reasonable business decisions. Now consider this: 'ten percent of the egg producers being wiped out results in a up to 85% hike in retail prices'. Quite reasonably, don't you think? As for efficiency... maybe for the owners of the surviving 'egg producers'...

Robert Shiller on crypto-politics, Piketty, and why efficient market theory is a "half-truth"

The first two editions of Irrational Exuberance, Robert Shiller’s best-selling study of financial markets, both presciently called the top on asset bubbles of historic proportions. 1,700 more words