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7. Efficient Markets
 
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Financial Markets (2011) (ECON 252) Initially, Professor Shiller looks back at David Swensen's guest lecture, in particular with respect to the Sharpe ratio as a performance measure for investment strategies. He emphasizes the empirical difficulty to measure the standard deviation, specifically for illiquid asset classes, and elaborates on investment strategies that manipulate the Sharpe ratio. Subsequently, he focuses on the Efficient Markets Hypothesis. This theory states that markets efficiently incorporate all public information, which consequently renders beating the market impossible. For example, technical analysis fails to provide powerful, short-run profit opportunities. A consequence of the Efficient Markets Hypothesis is that stock prices follow a Random Walk, as innovations to the stock price must be solely attributable to news. Professor Shiller contrasts the behavior of a Random Walk with that of a First-Order Autoregressive Process, and concludes that the latter statistical process matches the reality of the stock market more closely. This conclusion, combined with the evidence that investment managers like David Swensen are capable of consistently outperforming the market leads Professor Shiller to the conclusion that the Efficient Markets Hypothesis is a half-truth. 00:00 - Chapter 1. Swensen's Lecture in Retrospect and Manipulations of the Sharpe Ratio 16:06 - Chapter 2. History of the Efficient Markets Hypothesis 29:10 - Chapter 3. Testing the Efficient Markets Hypothesis 40:49 - Chapter 4. Technical Analysis and the Head and Shoulders Pattern 47:04 - Chapter 5. Random Walk vs. First-Order Autoregressive Process as Stock Price Model Complete course materials are available at the Yale Online website: online.yale.edu This course was recorded in Spring 2011.
Views: 111400 YaleCourses
Efficient Markets Hypothesis (EMH) | Finance | Chegg Tutors
 
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The efficient markets hypothesis (EMH) is an investment theory that asserts that financial markets are "informationally efficient." That is, markets always reflect all available information about an asset's value. According to EMH, an investor should not be able to use market timing techniques or expert stock selection to outperform the market. There are three variations of the hypothesis. The strong version asserts that all information, including insider information, is instantly reflected in an asset's price. Semi-strong theory includes only current information available to the public. The weak version asserts only past information available to the public is reflected. While EMH is a fundamental theory, it is subject to ongoing debate about its validity, especially in times of major disruption in the financial markets. ---------- Finance tutoring on Chegg Tutors Learn about Finance terms like Efficient Markets Hypothesis (EMH) on Chegg Tutors. Work with live, online Finance tutors like Alex T. who can help you at any moment, whether at 2pm or 2am. Liked the video tutorial? Schedule lessons on-demand or schedule weekly tutoring in advance with tutors like Alex T. Visit https://www.chegg.com/tutors/Finance-online-tutoring/?utm_source=youtube&utm_medium=video&utm_content=managed&utm_campaign=videotutorials ---------- About Alex T., Finance tutor on Chegg Tutors: QMC, London University, Class of 1975 Biology major Subjects tutored: Computer Science, Statistics, Basic Math, Data Science, Microsoft Excel, Linear Programming, Geometry, Business, Trigonometry, Biology, Astronomy, Mathematica, GMAT, Pre-Calculus, SAT, Pre-Algebra, Algebra, and Basic Science TEACHING EXPERIENCE I have lectured in Biology, Math and Corporate Finance at UC Merced for a number of years. Prior to that, in industry, I developed training programs for 3rd party developers for a financial application used in major financial centers, and a bioinformatics training course for a users of a chemogenomics platform used in drug discovery. I have a course on business forecasting at Udemy: www.udemy.com/business-forecasting-with=google-sheets/ EXTRACURRICULAR INTERESTS I am an avid follower of all things astronomical, most particularly alien worlds and space travel. I have a published a technical book for Springer about a novel approach for space craft design that primarily uses water. My other interests are programming and artificial intelligence. Want to book a private lesson with Alex T.? Message Alex T. at https://www.chegg.com/tutors/online-tutors/Alex-T-2952716/?utm_source=youtube&utm_medium=video&utm_content=managed&utm_campaign=videotutorials ---------- Like what you see? Subscribe to Chegg's Youtube Channel: http://bit.ly/1PwMn3k ---------- Visit Chegg.com for purchasing or renting textbooks, getting homework help, finding an online tutor, applying for scholarships and internships, discovering colleges, and more! https://chegg.com ---------- Want more from Chegg? Follow Chegg on social media: http://instagram.com/chegg http://facebook.com/chegg http://twitter.com/chegg
Views: 41191 Chegg
Efficient Market Hypothesis in 2 Easy Steps: What is Efficient Market Hypothesis Lecture EMH
 
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Clicked here http://www.MBAbullshit.com/ and OMG wow! I'm SHOCKED how easy.. As can be seen on http://mbabullshit.com/blog/efficient-market-hypothesis/ about EMH, stocks inside the stock market ordinarily rise in worth when you can find excellent news with regard to a stock's company. Conversely, they regularly move down if you can find not so good news about a business enterprise. Why? If good news relating to a stock comes out (as though, for example, information in which the firm obtained a lot of profits), thereafter each and every one suddenly wants to buy the stock, to make sure that they will be able to gain from the larger proceeds. Once any individual works to purchase the stock, the elevated "demand" for your stock brings up the worth.As a result, an awesome way to earn money with the use of stocks would be to buy the stock when something good transpires with the company (illustration: it strikes oil) but before the excellent news comes out to the masses... and while the stock price is still low. (After the firm strikes oil, you might have to wait one or even 2 days for the general public to know about it from the news.) And next, after the excellent news has come out, everybody else will attempt to pay for the stock, and the stock price will climb. In the event the stock price is already up, you'll be able to sell your stock at a significant price and generate a superb profit.In this brand of scenario, whom would you say must have a great reward? The best buddy of the company chief or the universal masses? Obviously, the finestpreferredbest mate of the enterprise chief is at a very good convenience! He can easily learn via the chief executive-chumin relation to the firm finding,hitting oil prior to everyone else! And then, he is able to buy the stock when it's still at a reduced bargain. Then, he is able to in simple terms wait one or 2 days for the reports to get going to the universal masses and for the universal public to kick off ordering the share; which generally is likely to drive up the share price. So next, the chief executive's chum could basically sell at the higher rate and get an easy swift profit. Nonetheless suppose... information traveled veryremarkablyremarkablyveryvery rapidly? What if, as soon as the firm struck oil, the whole masses would know about it basically immediately; really as fast as the firm chief's buddy? How? Maybe the news media is actually indeed "streamlined" in acquiring and relaying information (just like those "established" journalists). Or alternatively maybe, regardless of if the news channel is sluggish, social media (for example Facebook or Twitter) helps transmit the data notably swiftly (perhaps a person at the oil well instantly tweets it and it gets retweeted plenty of occasions over the globe in just seconds). In this case, will the company chief executive's chum remain to have better chances? Obviously, the answer is no. This is the crux of the EMH or Efficient Market Hypothesis. When industry informationinformationinformation travels particularly fast, powerfully as well as more or less immediately (featuring "strong" market efficiency), company officers, their friends, and additional guys utilizing "inside" resources and info do not develop better chances more than the general public in relation to investing in shares.The converse is moreover thought to be right. In the event that market facts travels steadily and notably inefficiently (having "weak" market efficiency), then company officers, their close friends and additional guys utilizing "inside" information have a great leverage versus the broad public on the subject of flipping in shares. There may be additionally a scheme in between the two extremes above. In the event that market information travels not too swiftly although not very sluggish either, then firm officers and their friends own some advantage against the broad masses when it comes to trading in shares of stock. This is termed "semi-strong" market efficiency. To put it briefly: Institution officers and "buddies" of company officers only ownownownhaveown an advantage in the event that facts flows gradually over time and "inefficiently." In the event that the information in the market moves just about instantly and "efficiently," then firm officers and close mates do not obtain an edge and are not able to easily "trade on the news broadcast." http://www.youtube.com/watch?v=h5JDftgykcg
Views: 168104 MBAbullshitDotCom
Market Efficiency
 
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In this video we will take a look at the concept of market efficiency and the three forms of market efficiency. http://financetrain.com
Views: 21378 Finance Train
What is The Efficient Market Hypothesis - EMH?
 
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Welcome to the Investors Trading Academy talking glossary of financial terms and events. Our word of the day is “Efficient Market Hypothesis” You can't beat the market. The efficient market hypothesis says that the price of a financial asset reflects all the information available and responds only to unexpected news. Thus prices can be regarded as optimal estimates of true investment value at all times. It is impossible for investors to predict whether the price will move up or down as future price movements are likely to follow a random walk, so on average an investor is unlikely to beat the market. This belief underpins ­arbitrage pricing theory, the capital asset pricing model and concepts such as beta. The hypothesis had few critics among financial economists during the 1960s and 1970s, but it has come under increasing attack since then. The fact that financial prices were far more volatile than appeared to be justified by new information, and that financial bubbles sometimes formed, led economists to question the theory. Behavioral economics has challenged one of the main sources of market efficiency, the idea that all investors are fully rational homo economicus. Some economists have noted the fact that information gathering is a costly process, so it is unlikely that all available information will be reflected in prices. Others have pointed to the fact that arbitrage can become costlier, and thus less likely, the further away from fundamentals prices move. The efficient market hypothesis is now one of the most controversial and well-studied propositions in economics, although no consensus has been reached on which markets, if any, are efficient. However, even if the ideal does not exist, the efficient market hypothesis is useful in judging the relative efficiency of one market compared with another. By Barry Norman, Investors Trading Academy - ITA
Markets, Efficiency, and Price Signals: Crash Course Economics #19
 
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Adriene and Jacob teach you all about markets. So, in free market(ish) economies like the United States and most of the world, markets are a big deal. Markets work to produce the stuff that consumers want, and that society needs. Today we'll talk about productive and allocative efficiency, skinny jeans, price signals, and more in this information-dense installment of Crash Course. Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Mark, Eric Kitchen, Jessica Wode, Jeffrey Thompson, Steve Marshall, Moritz Schmidt, Robert Kunz, Tim Curwick, Jason A Saslow, SR Foxley, Elliot Beter, Jacob Ash, Christian, Jan Schmid, Jirat, Christy Huddleston, Daniel Baulig, Chris Peters, Anna-Ester Volozh, Ian Dundore, Caleb Weeks -- Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
Views: 421776 CrashCourse
Efficient Portfolio Frontier - Financial Markets by Yale University #21
 
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This video is part of an online course, Financial Markets, created by Yale University. Learn finance principles to understand the real-world functioning of securities, insurance, and banking industries. Enroll today at https://www.coursera.org/learn/financial-markets-global?utm_source=yt&utm_medium=social&utm_campaign=channel&utm_content=yale to get access to the full course. About this course: An overview of the ideas, methods, and institutions that permit human society to manage risks and foster enterprise. Emphasis on financially-savvy leadership skills. Description of practices today and analysis of prospects for the future. Introduction to risk management and behavioral finance principles to understand the real-world functioning of securities, insurance, and banking industries. The ultimate goal of this course is using such industries effectively and towards a better society. Visit https://www.coursera.org/learn/financial-markets-global?utm_source=yt&utm_medium=social&utm_campaign=channel&utm_content=yale to learn more! Keep in touch with Coursera! Twitter: https://twitter.com/coursera Facebook: https://www.facebook.com/Coursera/
Views: 177 Coursera
What Is the Efficient Market Hypothesis?
 
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The main idea behind the efficient market hypothesis is that the prices of traded assets already reflect all publicly available information – making it impossible to “beat the market” by systematically outperforming it over time. --------------------------------------------------------------- Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Dictionary of Economics Course: http://bit.ly/2HumG9f Additional practice questions: http://bit.ly/2JOklo1 Ask a question about the video: http://bit.ly/2vhpods Help translate this video: http://bit.ly/2H7FVX6
Imperfections in Financial Markets and Noise Trading 1 (David Romer - Berkeley PhD)
 
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In this video I discuss the baseline model used in Financial Economics, that assumes that markets are efficient (Fama's Efficient-Market Hypothesis), and explain what does that mean and how is it (theoretically) possible. In later videos I will present departures from this hypothesis through the presence of what is known as Noise Traders.
13x23 Market Anomalies
 
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Views: 2738 CFA backup
An Introduction to Efficient Capital Markets
 
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Professor David Hillier, University of Strathclyde; Short videos for students of my Finance Textbooks, Corporate Finance and Fundamentals of Corporate Finance Check out my Amazon page: https://www.amazon.co.uk/s/ref=dp_byline_sr_book_1?ie=UTF8&text=David+Hillier&search-alias=books-uk&field-author=David+Hillier&sort=relevancerank
Views: 3620 David Hillier
George Soros Lecture Series: Financial Markets
 
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Open Society Foundations chairman and founder George Soros shares his latest thinking on economics and politics in a five-part lecture series recorded at Central European University, October 26-30, 2009. The lectures are the culmination of a lifetime of practical and philosophical reflection. Soros discusses his general theory of reflexivity and its application to financial markets, providing insights into the recent financial crisis. The third and fourth lectures examine the concept of open society, which has guided Soros's global philanthropy, as well as the potential for conflict between capitalism and open society. The closing lecture focuses on the way ahead, examining the increasingly important economic and political role that China will play in the future. Learn more and watch the lecture series: http://www.opensocietyfoundations.org/multimedia/george-soros-open-society-financial-crisis-and-way-ahead
Views: 191233 Open Society Foundations
Making Sense Of Market Anomalies 😵
 
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Making Sense Of Market Anomalies. http://www.financial-spread-betting.com/strategies/strategies-tips.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! What are the behavioural finance explanations of market anomalies? Market anomalies are things that go against the efficient market hypothesis theory and which seem to imply that is is possible to achieve consistent returns by utilising investment strategies that take advantage of such anomolies . The efficient market hypothesis theory assumes every investor is rational and they act with clarity making logical decisions. I don't subscribe to that at least from a short-term perspective. But I am a believer that most of the times markets are almost efficient. I think buying and selling comes in spells so we have spells of opportunity with inefficiencies where there are market anomalies. We see this in broad perspectives - for instance crashes in bear markets always overshoot to the downside before spiking up again aggressively. And we see this every day with news releases..etc Investment Decisions: Mitigating Overconfidence and Attention Bias Conservatism - attached to old set of beliefts Overconfidence - overestimate ability; we think we are geniuses from time to time. This happens and leads to overtrading. Biased self-attribution - acknowledge events that confirm existing beliefs Attention bias - big companies that are on the news. Related Videos Making Sense Of Market Anomalies 😵 https://www.youtube.com/watch?v=UryjRoBJR7E Monday, Turn of the Month and January Effect on Stock Market https://www.youtube.com/watch?v=RjdiXmQOY8U Trading Around Christmas And New Year. The Santa Rally! 🎅🎁 https://www.youtube.com/watch?v=pgZLsk3Tq8o
Views: 1583 UKspreadbetting
The efficient financial market
 
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If you talk to an active investor, she will tell you that she thinks that she can beat the market averages. But note that by definition, it is impossible for everyone to beat the market average because, in aggregate, everyone is the average. But each investor thinks he or she knows something that the rest of the market doesn't. This is very doubtful. Unless you're talking about illegal insider trading, there are probably a thousand other investment professionals who know your supposed secret, and already have reacted to the information by pushing the security's price up or down. There are over 100,000 full-time investment professionals in the United States. If you assume that each of them follows an average of 30 stocks, that means that each of the 3,000 largest stocks are followed by at least 1,000 investment professionals, and this doesn't even count the millions of serious amateur investors out there. With a thousand professionals constantly monitoring a stock, it will be very difficult for you to beat these full-time pros. The cost of trying to beat the market Here's another thing to consider. Hunting for so-called bargains takes time and money. If you want to beat the market you'll have to pay expensive analysts to read the fine print in quarterly reports, and these same analysts will have to pay news services for reports and buy computers and costly software to perform analysis. Also, trading costs money in commissions and something called slippage which occurs when your buying or selling moves the price against you. Finally, active trading means that you'll have to pay a lot in capital gains taxes as opposed to the buy-and-hold investor who delays this tax as long as he holds on to his securities. Can an active trader find enough bargains to overcome the added costs of research and taxes? Academics who developed something called the efficient market theory say no. This is the end of side 1 This is the end of side 1. To listen to side 2 please fast-forward the tape and turn the cassette over. The efficient market is one theory that may be right Although I have three college degrees, I don't put too much stock in a lot of academic thinking. But when it comes to the efficient market theory, I think the ivory tower crowd has stumbled onto something because it's backed up by solid evidence. The efficient market theory says that since so many intelligent people are hunting for good securities, current market prices already reflect valid prices for those securities. Now I'm the first to say that some of these smart investment pros often make mistakes, but they also sometimes do very well. But in aggregate, especially over time, they really do no better than market averages. Index funds beat 75 percent of managed funds So that's the concept behind the efficient market theory, but what about some evidence that indicates that active trading really won't help you? A number of independent studies have shown that a so-called index fund, which passively buys and holds an entire basket of stocks like the Standard & Poors 500 stock index, has outperformed 75 percent of all actively managed stock mutual funds. Further, after you figure in the taxes paid by active funds, an index fund beats about 90 percent of the active funds. Index funds are able to beat actively managed funds because the market already prices most stocks accurately, and because index funds have much lower expenses than active stock funds. The average stock fund charges annual expenses of 1.4 percent. Much of this money goes into paying for expensive research or a high salary to the supposed hot stock picker. The typical index fund, however, has annual expenses of only two-tenths of one percent. Over time, stocks have returned about 10 percent per year, so the more than 1 percent advantage enjoyed by an index fund is very hard to beat. And when you add in the tax benefits of a buy-and-hold strategy, the index fund's lead is almost insurmountable. Copyright 1997 by David Luhman
Views: 364 MoneyHop.com
Hedge Funds and Risks - Financial Markets by Yale University #15
 
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This video is part of an online course, Financial Markets, created by Yale University. Learn finance principles to understand the real-world functioning of securities, insurance, and banking industries. Enroll today at https://www.coursera.org/learn/financial-markets-global?utm_source=yt&utm_medium=social&utm_campaign=channel&utm_content=yale to get access to the full course. About this course: An overview of the ideas, methods, and institutions that permit human society to manage risks and foster enterprise. Emphasis on financially-savvy leadership skills. Description of practices today and analysis of prospects for the future. Introduction to risk management and behavioral finance principles to understand the real-world functioning of securities, insurance, and banking industries. The ultimate goal of this course is using such industries effectively and towards a better society. Visit https://www.coursera.org/learn/financial-markets-global?utm_source=yt&utm_medium=social&utm_campaign=channel&utm_content=yale to learn more! Keep in touch with Coursera! Twitter: https://twitter.com/coursera Facebook: https://www.facebook.com/Coursera/
Views: 670 Coursera
Are markets efficient?
 
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review.chicagobooth.edu | Do market prices generally reflect all available information? Or are they prone to bubbles? On this episode of The Big Question, two members of the Chicago Booth faculty—Nobel laureates Eugene F. Fama and Richard H. Thaler—discuss how markets behave (and misbehave). Along the way they discuss value stocks versus growth stocks, the existence of economic bubbles, and the curious case of the CUBA Fund.
Views: 68951 Chicago Booth Review
Efficient Markets
 
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More videos at http://facpub.stjohns.edu/~moyr/videoonyoutube.htm
Views: 8228 Ronald Moy
Financial market: efficiency (COM)
 
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Subject:Commerce Paper:Financial Markets and Institutions
Views: 93 Vidya-mitra
Ses 18: Capital Budgeting II & Efficient Markets I
 
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MIT 15.401 Finance Theory I, Fall 2008 View the complete course: http://ocw.mit.edu/15-401F08 Instructor: Andrew Lo License: Creative Commons BY-NC-SA More information at http://ocw.mit.edu/terms More courses at http://ocw.mit.edu
Views: 29049 MIT OpenCourseWare
Are Markets Efficient? (Discussing the Efficient Market Hypothesis)
 
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Are markets efficient? This is a question that has been debated for decades, particularly with the development of the Efficient Markets Hypothesis, which is credited to Eugene Fama. However, can the hypothesis be proven and is it correct? We go over some of the different viewpoints in this video. Presented by Nicholas Puri ★ ★ Check out our online financial school for a range of courses about the financial markets, economics and more: http://bit.ly/DuomoSchoolTrading ★ ★ ===== ★ Free 4-part trading mini-series (Inner Circle mailing list): http://bit.ly/DuomoInnerCircle ===== ★ Market Selection Service (free to join): http://bit.ly/MarketSelection ===== ★ Subscribe to our channel for more financial education: https://bit.ly/DuomoYouTube ===== ★ Full online trading course: http://bit.ly/DuomoCourse ===== SOCIAL MEDIA LINKS • Website: https://www.duomoinitiative.com • Members Forum: https://forum.duomoinitiative.com/ • Facebook: https://www.facebook.com/duomoinitiative • Twitter: https://twitter.com/duomoinitiative • Instagram: https://instagram.com/duomoinitiative • Nicholas Puri Twitter: https://twitter.com/nikipuri • Nicholas Puri Instagram: https://instagram.com/nikipuri • Nicholas Puri YouTube: https://www.youtube.com/channel/UCQnFR_qKeu2dgEDpTE24
Jeremy Siegel - Efficient Market Theory and the Recent Financial Crisis
 
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The Inaugural Conference @ King's, Institute for New Economic Thinking, Session 2: Has the Efficient Market Hypothesis Led to the Crisis? Collapsed with The Crisis?
Views: 21762 New Economic Thinking
Financial Markets: Friction, Efficiency, and Volatility
 
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It is an open question whether frictionless markets are more efficient. Traders and investors need time to digest new information; incorporate it in models and theories regarding the markets and specific securities; map out the full implications of recent developments; and decide how to act. We call this time lapse "friction" and it guarantees that players and agents act more or less rationally and consistently. In a frictionless market, panics, crashes, and bubbles are far more likely, rendering it less efficient, not more so. Three of the most important functions of free markets are: price discovery, the provision of liquidity, and capital allocation. Honest and transparent dealings between willing buyers and sellers are thought to result in liquid and efficient marketplaces. Prices are determined, second by second, in a process of public negotiation, taking old and emergent information about risks and returns into account. Capital is allocated to the highest bidder, who, presumably, can make the most profit on it. And every seller finds a buyer and vice versa. Volatility is considered the most accurate measure of risk and, by extension, of return, its flip side. The higher the volatility, the higher the risk - and the reward. That volatility increases in the transition from bull to bear markets seems to support this pet theory. But how to account for surging volatility in plummeting bourses? At the depths of the bear phase, volatility and risk increase while returns evaporate - even taking short-selling into account.
Views: 699 vakninmusings
Soros to efficient markets: R.I.P.
 
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Billionaire investor George Soros says that the financial crisis debunked the efficient market hypothesis and is proposing an alternative.
Views: 2882 CNN Business
Roberty Shiller on Efficient Market Theory- Excessive Volatility from Irrational people
 
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Why financial markets aren’t efficient. Incorporating psychology into economics. "Economists look at the stock market, they see it going up and down, and usually they don’t have the foggiest notion why. They think they need an excuse, so they figured out a theory that excused them from not knowing." Shiller is talking about the efficient market hypothesis. "Bob had this very simple insight," Campbell explains. "If you looked at stock prices, they seemed to be much more volatile than the stream of future dividends that they’re supposedly forecasting. But if the forecast is moving around too much, that means that people are changing their mind in a way that is predictable and, therefore, irrational." Shiller, willing to go out on a limb at a time when rational expectations models were predominant, had a boldness that appealed to many young economists.
Views: 1217 scottab140
4. Portfolio Diversification and Supporting Financial Institutions
 
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Financial Markets (2011) (ECON 252) In this lecture, Professor Shiller introduces mean-variance portfolio analysis, as originally outlined by Harry Markowitz, and the capital asset pricing model (CAPM) that has been the cornerstone of modern financial theory. Professor Shiller commences with the history of the first publicly traded company, The United East India Company, founded in 1602. Incorporating also the more recent history of stock markets all over the world, he elaborates on the puzzling size of the equity premium. very high historical return of stock market investments. After introducing the notion of an Efficient Portfolio Frontier, he covers the concept of the Tangency Portfolio, which leads him to the Mutual Fund Theorem. Finally, the consideration of equilibrium in the stock market leads him to the Capital Asset Pricing Model, which emphasizes market risk as the determinant of a stock's return. 00:00 - Chapter 1. Introduction 01:14 - Chapter 2. United East India Company and Amsterdam Stock Exchange 16:19 - Chapter 3. The Equity Premium Puzzle 21:09 - Chapter 4. Harry Markowitz and the Origins of Portfolio Analysis 29:41 - Chapter 5. Leverage and the Trade-Off between Risk and Return 39:55 - Chapter 6. Efficient Portfolio Frontiers 01:00:21 - Chapter 7. Tangency Portfolio and Mutual Fund Theorem 01:09:20 - Chapter 8. Capital Asset Pricing Model (CAPM) Complete course materials are available at the Yale Online website: online.yale.edu This course was recorded in Spring 2011.
Views: 136024 YaleCourses
IS THE STOCK MARKET PREDICTABLE? | Efficient Market Hypothesis
 
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www.SkyViewTrading.com Is the stock market predictable? Many would argue YES... But the Efficient Market Hypothesis says that it's impossible to “beat” the market because all current and relevant information is already factored into the stock price. Most traders defensively argue against this theory because if it were true, then that means they can’t outperform the overall market… So why even try? It is up to you to decide for yourself... We, on the other hand, are advocates of this theory that the markets are incredibly efficient. But we see it as a GOOD thing because we know that as long as we are trading liquid assets, the pricing is always very fair. In this video, we show you a demonstration of Market Efficiency, and we also explain what this means to our trading. Adam Thomas Sky View Trading is the market rigged stock market predictable how to predict the stock market how to pick stocks efficient market hypothesis efficient market theory market efficiency how to trade options options trading stock trading
Views: 76891 Sky View Trading
Is Stock Market Really Efficient ?!?!
 
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➤The intelligent Investor: https://www.youtube.com/watch?v=h_25KuECJos&t=182s ➤The Most Important Thing: https://www.youtube.com/watch?v=jwO7Spv4XR8 ➤Deep Value: https://www.youtube.com/watch?v=h_25KuECJos&t=182s Is Market Really Efficient | Stock Market |How to make money on stocks | Warren Buffett | efficient market hypothesis | investing | emh stock | market analysis | market intelligence | financial markets | share market | stock exchange | stock prices | stocks to buy | stock trading | new york stock exchange | stockcharts | technical analysis | investing in stocks | stock tips | penny stock trading | markets today
Views: 675 Aimstone
Benoit Mandelbrot On Efficient Markets- FT.Com 9.30.09
 
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http://www.valueinvestingpro.com/http://www.valueinvestingpro.com/http://www.valueinvestingpro.com/
Views: 30352 valueinvestingpro
Ses 19: Efficient Markets II
 
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MIT 15.401 Finance Theory I, Fall 2008 View the complete course: http://ocw.mit.edu/15-401F08 Instructor: Andrew Lo License: Creative Commons BY-NC-SA More information at http://ocw.mit.edu/terms More courses at http://ocw.mit.edu
Views: 32070 MIT OpenCourseWare
Efficient Capital Markets and Behavioural Finance: A Brief Overview
 
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Professor David Hillier, University of Strathclyde; Short videos for students of my Finance Textbooks, Corporate Finance and Fundamentals of Corporate Finance Check out www.david-hillier.com for my personal website.
Views: 2240 David Hillier
Covenant of Mayors Investment Forum Energy Efficiency Finance Market Place, Closing Session 20.02.19
 
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Moderator: Liviu Stirbat, Deputy Head of the Adaptation Unit, DG for Climate Action, European Commission Speakers: - Elia Trippel, Project Leader of the Sustainable Finance project, Financial Technology and Sustainable Finance Unit, DG for Financial Stability, Financial Services and Capital Markets Union, European Commission - Terry McCallion, Director, Energy Efficiency and Climate Change, European Bank for Reconstruction and Development - Myriam Metais, Director for the Secretary General, City of Paris - Björn Bergstrand, Head of Sustainability / Head of Media Relations, Kommuninvest - Reinhard Six, Senior Engineer in Energy Efficiency, European Investment Bank
Session 12: Objective 5 - Capital Market Efficiency
 
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The Finance Coach: Introduction to Corporate Finance with Greg Pierce Textbook: Fundamentals of Corporate Finance Ross, Westerfield, Jordan Chapter 12: Lessons from Capital Market History Objective 5 - Key Concepts: Capital Market Efficiency Price Behavior Efficient Market Reaction & Hypothesis Overreaction and Correction Market Efficiencies (Strong form, Semi-strong form, weak form) *Efficient capital markets will reaction quickly to change in the market More Information at: http://thefincoach.com/
Views: 5862 TheFinCoach
6. Efficient Markets vs. Excess Volatility
 
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Financial Markets (ECON 252) Several theories in finance relate to stock price analysis and prediction. The efficient markets hypothesis states that stock prices for publicly-traded companies reflect all available information. Prices adjust to new information instantaneously, so it is impossible to "beat the market." Furthermore, the random walk theory asserts that changes in stock prices arise only from unanticipated new information, and so it is impossible to predict the direction of stock prices. Using statistical tools, we can attempt to test the hypotheses and to predict future stock prices. These tests show that efficient markets theory is a half-truth: it is difficult but not impossible for some people to beat the market. 00:00 - Chapter 1. Last Thoughts on Insurance and Catastrophe Bonds 06:28 - Chapter 2. Information Access and the Efficient Markets Hypothesis 20:00 - Chapter 3. Varying Degrees of Efficient Markets and No Dividends: The Case of First Federal Financial 41:44 - Chapter 4. The Random Walk Theory 51:30 - Chapter 5. The First Order Auto-regressive Model 56:59 - Chapter 6. Challenges in Forecasting the Market Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses This course was recorded in Spring 2008.
Views: 50412 YaleCourses
Efficient Markets vs Behavioural Finance: Who Wins?
 
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Professor David Hillier, University of Strathclyde; Short videos for students of my Finance Textbooks, Corporate Finance and Fundamentals of Corporate Finance Website: www.david-hillier.com Check out my Amazon page: https://www.amazon.co.uk/s/ref=dp_byline_sr_book_1?ie=UTF8&text=David+Hillier&search-alias=books-uk&field-author=David+Hillier&sort=relevancerank
Views: 1750 David Hillier
Replicating Anomalies in Financial Markets with Hou, Xue, and Zhang
 
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This podcast episode was originally posted on June 30th, 2017. http://economicsdetective.com/2017/06/replicating-anomalies-financial-markets-hou-xue-zhang/ In this episode, I have three guests on the show with me: Kewei Hou of Ohio State University, Chen Xue of the University of Cincinnati, and Lu Zhang of Ohio State University. Kewei, Chen, and Lu have coauthored a paper titled “Replicating Anomalies,” a large-scale replication study that re-tests hundreds of so-called “anomalies” in financial markets. An anomaly is a predictable pattern in stock returns, or stated differently, it is a deviation from the efficient markets hypothesis. Their abstract reads as follows: The anomalies literature is infested with widespread p-hacking. We replicate the entire anomalies literature in finance and accounting by compiling a largest-to-date data library that contains 447 anomaly variables. With microcaps alleviated via New York Stock Exchange breakpoints and value-weighted returns, 286 anomalies (64%) including 95 out of 102 liquidity variables (93%) are insignificant at the conventional 5% level. Imposing the cutoff t-value of three raises the number of insignificance to 380 (85%). Even for the 161 significant anomalies, their magnitudes are often much lower than originally reported. Out of the 161, the q-factor model leaves 115 alphas insignificant (150 with t less than 3). In all, capital markets are more efficient than previously recognized. We discuss the process of replicating these anomalies, issues involving the use of equal-weighted vs value-weighted returns, and the problems of p-hacking in finance research. Works Cited Hamermesh, Daniel S. 2007. “Replication in Economics.” Canadian Journal of Economics 40(3):715?733. Kewei Hou, Chen Xue, Lu Zhang; Digesting Anomalies: An Investment Approach. Rev Financ Stud 2015; 28 (3): 650-705. Hou, Kewei and Xue, Chen and Zhang, Lu, Replicating Anomalies (June 12, 2017). Charles A. Dice Center Working Paper No. 2017-10; Fisher College of Business Working Paper No. 2017-03-010.
Financial Markets and Institutions - Lecture 26
 
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LEI, leading economic indicator, market efficiency, weak-form efficiency, semi-strong form efficiency, strong-form efficiency, undervalued, overvalued, fair value, true value, fundamental value, contrarian investing, stock trading regulation, SEC, international stock markets, integrated global markets, domino effect, international diversification,
Views: 1337 Krassimir Petrov
The Efficient Market Hypothesis - Professor Jagjit Chadha
 
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The talk explores the efficient markets hypothesis (EMH) and its effects on today’s financial markets http://www.gresham.ac.uk/lectures-and-events/the-efficient-markets-hypothesis The essence of financial prices is that they should reflect all publicly available information. This means that they should have no predictive power for future financial prices. But learning, fads, fashions and herds tend to throw up anomalies for this position. And the role of incomplete or asymmetric information should not be overlooked after the crisis. Can the hypothesis be rescued? The transcript and downloadable versions of the lecture are available from the Gresham College website: http://www.gresham.ac.uk/lectures-and-events/the-efficient-markets-hypothesis Gresham College has been giving free public lectures since 1597. This tradition continues today with all of our five or so public lectures a week being made available for free download from our website. There are currently over 1,900 lectures free to access or download from the website. Website: http://www.gresham.ac.uk Twitter: http://twitter.com/GreshamCollege Facebook: https://www.facebook.com/greshamcollege Instagram: http://www.instagram.com/greshamcollege
Views: 1537 Gresham College
Andrew W. Lo: "Adaptive Markets: Financial Evolution At The Speed Of Thought" | Talks at Google
 
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Half of all Americans have money in the stock market, yet economists can’t agree on whether investors and markets are rational and efficient, as modern financial theory assumes, or irrational and inefficient, as behavioral economists believe—and as financial bubbles, crashes, and crises suggest. This is one of the biggest debates in economics, and the value or futility of investment management and financial regulation hang on the outcome. In his new book, Andrew Lo cuts through this debate with a new framework, the Adaptive Markets Hypothesis, in which rationality and irrationality coexist. Drawing on evolutionary biology, neuroscience, artificial intelligence, and other fields, Adaptive Markets shows that the theory of market efficiency isn’t wrong, but merely incomplete. Taking several examples from his book, Prof. Lo will provide an overview of his new theory of financial markets and what it means for financial crises, how we invest, and the future of financial technology. Get the book here: https://goo.gl/5W3py6 Moderated by Saurabh Madaan.
Views: 19760 Talks at Google
Fair and Efficient Regulation of Financial Markets
 
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Prof. Martin Hellwig, Max Planck Institute Prof. Anne Héritier Lachat, FINMA Prof. Axel Weber, UBS Chair: Prof. George-Marios Angeletos, University of Zurich and MIT
Views: 1015 UBS Center
Modern Portfolio Theory, the Efficient Market Hypothesis, and the Power of Dividend Investing
 
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Subscribe to Hidden Forces and gain access to the episode overtime, transcript, and show rundown here: http://hiddenforces.io/subscribe   In Episode 73 of Hidden Forces, Demetri Kofinas speaks with Daniel Peris, a Senior Portfolio Manager at Federated Investors in Pittsburgh where he oversees the firm's dividend-focused products. Today’s conversation is about the evolution of financial theory, beginning with the rough and tumble world of 19th-century finance with its stock syndicates, market corners, and curb exchanges. Where big personalities like Daniel Drew, James Fisk, and Jay Gould conspired and fought to take from Joe Public, and from each other, the riches afforded to them by laissez-faire capitalism and the industrial revolution. The discussion is broken into two parts. The first deals with the world as it was before 1929 with its unregulated, unstructured, and highly inefficient markets. The second part explores the world after the Great Crash, where a confluence of forces – economic, demographic, institutional, and intellectual – supported the procurement and distribution of a new set of financial theories that promised to explain away uncertainty and guide the allocation of risk in the pursuit of profits. As inheritors of this new world, we cannot help but function under the fallacies of its paradigms. One of these fallacies is the notion that economies are independent phenomena that operate, by and large, according to a certain set of physical laws. Most people will acknowledge that our economic and financial models are imperfect, but most people also think of them as being somewhat analogous to models developed in the natural sciences. Because of this false comparison to physics (equilibrium) and nature (normal distributions), people often remain unaware of the centrality of politics in theories of the economy. Economies are not independent phenomena that answer only to the laws of nature. They are political and social phenomena that exist within a political system. Theories of the economy that do not take into account the system within which they operate are flawed...in some cases, significantly so. Austrian theories of money and credit, for example, are better at describing how the banking system operates in a laissez-faire society, whereas Modern Monetary Theory is better at describing how it works in our current, fiat-based system of unrestrained credit growth. What often happens is that devotees of these different schools are actually advocating for a specific set of policies, under the pretense that their views are scientific and that their policies derive logically from some objective view of how an ideal economy operates, when in fact, they are based on political values and societal ideals. The MMT school is full of progressive social-democrats who want governments to play a larger role in the economy, whereas the Austrian school is full of conservative libertarians who want less government. This sorting along political lines is not a coincidence. Investment theories operate rather differently than theories about the economy, in that there is no argument in the investment world about what matters most. It’s profits. In light of this fact, the discrepancies between various investment theories require alternative explanations that do not rely on political ideology or moral sentiment. It would seem sufficient to declare that the widespread adoption of theories like Modern Portfolio Theory (MPT), the Efficient Market Hypothesis (EMH), Capital Asset Pricing Model (CAPM), etc., was enabled by the growth of a large middle class with excess income available for investment that had not directly experienced the boom and bust of the Roaring 20’s and accelerated by the Employee Retirement Income Security Act (ERISA) of 1974. Entrepreneurially minded financial industry professionals saw an opportunity, but this opportunity required a more streamlined approach to investing and one that would put themselves, and their clients, at ease. The need to bring order to the chaotic world of prices has encouraged the adoptions of systematic investment strategies that claimed the ability to quantify risk. When it comes to investing other people’s money, having a more coherent, easy-to-understand theory that provides the illusion of control is a very valuable tool. From an evolutionary point of view, it is no wonder how theories purporting to quantify risk and target reward proliferated so quickly. It was in everyone’s interest that they do so. How these theories came together to form the dominant, ideological template of risk-adjusted-return measured against exposure to the broader market is the essence of today’s episode. Its significance can be found in the implications associated with equating diversification with correlation: trading idiosyncratic risk for systemic risk and what happens when everyone is doing it. Producer & Host: Demetri Kofinas Editor & Engineer: Stylianos Nicolaou
Views: 1075 Hidden Forces
Tests of the Efficient Markets Hypothesis
 
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Professor David Hillier, University of Strathclyde; Short videos for students of my Finance Textbooks, Corporate Finance and Fundamentals of Corporate Finance Website: www.david-hillier.com Check out my Amazon page: https://www.amazon.co.uk/s/ref=dp_byline_sr_book_1?ie=UTF8&text=David+Hillier&search-alias=books-uk&field-author=David+Hillier&sort=relevancerank
Views: 6931 David Hillier
How Efficient are Markets Really?
 
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(www.abndigital.com) Eugene Fama, seen as the father of the efficient market hypothesis, further built on original work done in the 1900's. His 1960's PHD thesis has seen many variations to the original theme. Some academics suggest that efficiency can take on a strong, semi strong and weak form and more recently behavioural finance specialists have highlighted glaring faults with the efficient market hypothesis. So how efficient are markets really? Is there something that can be learnt from the efficient market hypothesis?
Views: 9612 CNBCAfrica
Nobel Prize Prof. Robert J. Shiller on Market Efficiency and the Role of Finance in Society
 
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Robert J. Shiller, Nobel Laureate in Economic Sciences and Professor of Economics at Yale University, European Finance Association (EFA) Annual Meeting, Università della Svizzera italiana (www.usi.ch), Lugano
Session 12: Objective 5 - Capital Market Efficiency (2016)
 
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The Finance Coach: Introduction to Corporate Finance with Greg Pierce Textbook: Fundamentals of Corporate Finance Ross, Westerfield, Jordan Chapter 12: Lessons from Capital Market History Objective 5 - Key Concepts: Capital Market Efficiency Price Behavior Efficient Market Reaction & Hypothesis Overreaction and Correction Market Efficiencies (Strong form, Semi-strong form, weak form) *Efficient capital markets will reaction quickly to change in the market More Information at: http://thefincoach.com/
Views: 1271 TheFinCoach
Capital market line (CML) versus security market line (SML), FRM T1-8
 
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[here is my xls https://trtl.bz/2Fru70r] The CML contains ONLY efficient portfolios (and plots return against volatiltiy; aka, total risk) while the SML plots any portfolio (and plots return against beta; aka, systematic risks) including inefficient portfolios. Discuss this video here in our FRM forum: https://trtl.bz/2Sip2L9 Subscribe for future tutorials on expert finance and data science https://www.youtube.com/c/bionicturtle?sub-confirmation=1 For other videos in our Financial Risk Manager (FRM) series, see one of the following playlists: Texas Instruments BA II+ Calculator https://www.youtube.com/playlist?list=PLCBifSfCnx3sjobyTnEyv2N4baxF8-wiS Risk Foundations (FRM Topic 1) https://www.youtube.com/playlist?list=PLCBifSfCnx3sm2OmHA1BO41Zcc4ntUwMG Quantitative Analysis (FRM Topic 2) https://www.youtube.com/playlist?list=PLCBifSfCnx3sormazeHQr5G9etDITYStF Financial Markets and Products: Intro to Derivatives (FRM Topic 3, Hull Ch 1-7) https://www.youtube.com/playlist?list=PLCBifSfCnx3tQuvaS-lG-8ZqUh7NvxRDg Financial Markets and Products: Option Trading Strategies (FRM Topic 3, Hull Ch 10-12) https://www.youtube.com/playlist?list=PLCBifSfCnx3s7iycLx2eZQeIUPo_4a8n8 FM&P: Intro to Derivatives: Exotic options (FRM Topic 3) https://www.youtube.com/playlist?list=PLCBifSfCnx3sfoUGYayuqJRhHA5jCFkGr Valuation and RIsk Models (FRM Topic 4) https://www.youtube.com/playlist?list=PLCBifSfCnx3sqbQnW4HkZ3HoScTG0Lluz #bionicturtle #risk #financialriskmanager #FRM #finance #expertfinance
Views: 35555 Bionic Turtle
How Were the Financial Markets Created?
 
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The financial markets are such a big part of how the world operates today. But, once upon a time, they didn't exist! So how did the financial markets get started? What was the first stock exchange and what securities were traded? Let's find out... ★ Free Course: Introduction to Trading the Duomo Method: http://bit.ly/2Ul2oWx ===== ★ ★ Check out our online financial school for a range of courses about the financial markets, economics and more: http://bit.ly/DuomoSchoolTrading ★ ★ ===== ★ Market Selection Service (free to join): http://bit.ly/MarketSelection ===== ★ Subscribe to our channel for more financial education: https://bit.ly/DuomoYouTube ===== ★ Full online trading course: http://bit.ly/DuomoCourse ===== SOCIAL MEDIA LINKS • Website: https://www.duomoinitiative.com • Members Forum: https://forum.duomoinitiative.com/ • Facebook: https://www.facebook.com/duomoinitiative • Twitter: https://twitter.com/duomoinitiative • Instagram: https://instagram.com/duomoinitiative • Nicholas Puri Twitter: https://twitter.com/nikipuri • Nicholas Puri Instagram: https://instagram.com/nikipuri • Nicholas Puri YouTube: https://www.youtube.com/channel/UCQnFR_qKeu2dgEDpTE24
Financial Literacy | Efficient Financial Market (Part2 | Chapter4)
 
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What is arbitrage? And what the efficient financial market assumption means? Watch this video to understand one of key concept of finance. Build your Financial Literacy from today. https://www.jumfin.com https://www.facebook.com/jumfin
Chapter 6 Efficient Capital Markets, Spring 2015
 
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MBA 627 Investment Management, Smoluk, USM Finance Man
Views: 419 Bert Smoluk