Published October 31, 2012
| Version v1
Journal article
Open
History of the Efficient Market Hypothesis
Authors/Creators
- 1. Xi'an Jiaotong-Liverpool University 111 Ren'ai Road, Dushu Lake Higher Education Town, Suzhou Industrial Park 215123, China
- 2. National University of Singapore
- 3. Bentley University 145 Forest Street, Waltham, Boston MA 02451 USA
Description
This paper reviews and summarizes the work of Sewell (2011). The purpose is to investigate the evolution and development of the Efficient Market Hypothesis from its inception as theory of probability to Fama (1965) proposition and revision (Fama, 1970; 1991). It discusses the random walk theory and reports the various research papers that have been written on the subject. This paper also clarifies the debate on the validity of EMH and explains the importance of EMH to finance theory.