Efficient Markets Hypothesis

April 27, 2010

We went over this for the bazillionth time in class last night, but I finally understood what we were talking about when I saw it stated this way:

The expected price of an asset tomorrow is today’s price.

Advertisements

One Response to “Efficient Markets Hypothesis”

  1. dave hedengren Says:

    Plus the normal rate of return, right? That’s why stocks are better investments than mattresses.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: