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Efficient markets theory(EMT) |
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Efficient markets theory(EMT)Principle that all assets are correctly priced by the market, and that there are no bargains.Efficient markets theory(EMT) Similar MatchesEfficient marketEfficient marketEconomy in which prices correctly reflect all relevant information. Efficient setEfficient setGraph representing a set of portfolios that maximize expected return at each level of portfolio risk. Efficient marketEfficient marketA market in which, at a minimum, current price changes are independent of past price changes, or, more strongly, price reflects all (publicly) available information. Some believe foreign exchange markets to be efficient, which in turn implies that future exchange rates cannot profitably be predicted. Efficient frontierEfficient frontierThe combinations of securities portfolios that maximize expected return for any level of expected risk, or that minimizes expected risk for any level of expected return. Pioneered by Harry Markowitz. Inefficient portfolioInefficient portfolioGroup of assets dominated by at least one other portfolio under the mean variance rule. For example, if A has both lower return and higher volatility than B, we say A is dominated by B. Further SuggestionsMinimum efficient scaleInformation Coefficient (IC) Regression coefficient Earnings response coefficient Efficient capital market Internally efficient market Operationally efficient market Efficient diversification Coefficient of Variation efficient market theory Efficient allocation Gini Coefficient Coefficient of determination Correlation coefficient |
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