One Simple Test of Samuelson’s Dictum for the Stock Market
Jung and Shiller have an interesting paper that looks at Samuelson’s dictum: that is that the market is more efficient pricing individual stocks than getting the overall price level (i.e. the market) correct. In English it means that while we can price stocks relative to one another reasonably well, we can not price the overall market as well. [FinanceProfessor Annotation]
Content: Article | Authors: Jeeman Jung, Robert J. Shiller | Source: Social Science Research Network (SSRN) | Subjects: Economics, Finance | Industry: Investment Banking