- Title
- The Efficient Market Hypothesis and Its Critics
- Author(s)
- Burton G. Malkiel Burton Malkiel (Princeton University)
- Abstract
- Revolutions often spawn counterrevolutions and the efficient market hypothesis in finance is no exception. The intellectual dominance of the efficient-market revolution has more been challenged by economists who stress psychological and behavioral elements of stock-price determination and by econometricians who argue that stock returns are, to a considerable extent, predictable. This survey examines the attacks on the efficient-market hypothesis and the relationship between predictability and efficiency. I conclude that our stock markets are more efficient and less predictable than many recent academic papers would have us believe.
- Creation Date
- 2003-04
- Section URL ID
- CEPS
- Paper Number
- 91
- URL
- https://gceps.princeton.edu/wp-content/uploads/2017/01/91malkiel.pdf
- File Function
- Jel
- G14
- Keyword(s)
- Suppress
- false
- Series
- 3