Word info

efficient market hypothesis

Noun

Meaning

efficient market hypothesis (uncountable)

(economics) The idea that the prices generated by a financial market represent the best possible estimate of any investment’s value.

Source: en.wiktionary.org

Examples

I am not well qualified to criticize the theory of rational expectations and the efficient market hypothesis because as a market participant I considered them so unrealistic that I never bothered to study them. George Soros

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