Reconciling Efficient Markets with Behavioral Finance: The Adaptive Markets Hypothesis
The battle between proponents of the Efficient Markets Hypothesis and champions of behavioral finance has never been more pitched, and there is little consensus as to which side is winning or what the implications are for investment management and consulting. In this article, I review the case for and against the Efficient Markets Hypothesis, and describe a new framework – the Adaptive Markets Hypothesis … [ Read more ]
Content: Article | Author: Andrew W. Lo | Source: Social Science Research Network (SSRN) | Subject: Finance