publication . Article . 1991

Stock market efficiency: an autopsy?

Peter Fortune;
Open Access
  • Published: 01 Jan 1991
This article assesses the current state of the efficient market hypothesis, which was the conventional wisdom among academic economists in the 1970s and most of the 1980s. It concludes that empirical evidence provides an overwhelming case against the efficient market hypothesis. The evidence exists in the form of a number of well-established anomalies--the small firm effect, the closed-end fund puzzle, the Value Line enigma, the loser’s blessing and winner’s curse, and the January and weekend effects. ; These anomalies can be explained by resorting to a model of "noise trading," in which markets are segmented with the "smart money" enforcing a high degree of eff...
free text keywords: Stock market
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