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Efficient Market Hypothesis Summary

April 8, 2018

EMH – Weak Form: No past price or volume information can be used to generate abnormal returns (technical analysis will not work)

EMH – Semi-Strong Form: All publicly available information is reflected in prices (both technical and financial statement analysis will not work)

EMH – Strong Form: All public and private market information is fully reflected (insider information will not provide abnormal returns)

Some studies find evidence to contradict market efficiency.

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