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Finance pp 127–134Cite as

Palgrave Macmillan

Efficient Market Hypothesis

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Abstract

A capital market is said to be efficient if it fully and correctly reflects all relevant information in determining security prices. Formally, the market is said to be efficient with respect to some information set, ϕ, if security prices would be unaffected by revealing that information to all participants. Moreover, efficiency with respect to an information set, ϕ, implies that it is impossible to make economic profits by trading on the basis of ϕ.

Keywords

  • Stock Price
  • Abnormal Return
  • Price Change
  • Mutual Fund
  • Financial Economic

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Authors
  1. Burton G. Malkiel
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    © 1989 Palgrave Macmillan, a division of Macmillan Publishers Limited

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    Malkiel, B.G. (1989). Efficient Market Hypothesis. In: Eatwell, J., Milgate, M., Newman, P. (eds) Finance. The New Palgrave. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-20213-3_13

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