EFFICIENT MARKETS HYPOTESIS AND MARKET ANOMALIES
SONYA GEORGIEVA
Abstract
Assumptions that all available information on the market is already included in the prices of financial assets and all actions forecasting future variations are useless, form informational efficiency of a capital market and are the basis of the Efficient Markets Hypothesis (EMH). But according to behavioral finance this type of efficient market can not explain the observed anomalies that represent a kind of indicator of inefficient markets. But it is still questionable whether these anomalies indicate a market inefficiency or related to incorrect understanding of risk premiums
Key words
Efficient Market Hypothesis, market anomalies
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