Section outline

  • Lecture Contents:

    The concept of an efficient market, Forms of market efficiency, Evidence on market efficiency, Implications of the efficient market hypothesis, Evidence of market anomalies etc.   

    Lecture Outcome:

    After studying these contents, students will be able to:

    1. Analyze the efficient market hypothesis (EMH) and recognize its significance to investors. 
    2. Evaluate how the EMH is tested, and what the evidence has shown.
    3. Recognize the anomalies (exceptions to market efficiency) that have been put forward. 
    4. Understand the behavioral finance arguments being made today.