Meaning Of Efficient Market Theory
The aspirin count theory is a lagging indicator and actually hasn t been formally.
Meaning of efficient market theory. Efficient market theory a controversial model on how markets work. A market theory that states stock prices and aspirin production are inversely related. The model has three forms.
A direct implication is that it is impossible to beat the market consistently on a risk adjusted basis since market prices should only react to new information. It states that the market efficiently deals with all information on a given security and reflects it in the price immediately.
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