Evidence that financial markets are efficient sometimes and inefficient most of the times
MetadataShow full item record
The issue of market efficiency attracted the attention of academicians since the existence of financial markets. Over time, two schools of thoughts were established: the efficient markets school and the behavioral finance school. Proponents of the former believed in the Efficient Markets Hypothesis whereas the latter brought evidence from psychology neurosciences to demonstrate the irrationality of investors in making financial decisions. Recently, an adaptive hypothesis was suggested. This paper proves mathematically the existence of this adaptability process and tests empirically its validity. The results support the adaptability process, namely that markets are indeed efficient sometimes and inefficient most of the time. Keywords: Efficient Markets Hypothesis, Behavioral Finance, Adaptive Markets Hypothesis, Smooth transition regression models, Threshold models, regime switching models, Financial Markets, Irrationality, S&P500, Market-to-Book ratio.
DescriptionThis work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Showing items related by title, author, creator and subject.
Sifton, Daniel (Libraries Unlimited, 2009)Like their colleagues in public services, technical services employees must continually adapt and evolve to keep pace with changes - often driven by technology - that push at the library from all directions. The most ...
Like fire to water: Building bridging collaborations between Disability service providers and course instructors to create user friendly and resource efficient UDL implementation material Fovet, Frédéric; Mole, Heather; Jarrett, Tynan; Sincox, David (Collected Essays on Learning and Teaching, 2014)This study presents a post-secondary campus` experience with systematic and global promotion of Universal Design for Learning. It analyzes data collected over a 24 months period, relating to course instructors’ responses ...
Demographic determinants of Canada’s households’ adoption of energy efficiency measures: Observations from the Households and Environment Survey, 2013 Das, Runa; Richman, Russell; Brown, Craig (Energy Efficiency, 2018)In addition to a growing and aging population, Canada has experienced large shifts in its residential sector. There are more households, homes are larger with less people in them, and there are more appliances per household, ...