Three forms of EMH and is there has another better way to achieve market efficiency in the future?
Three forms of EMH and is there has another better way to achieve market efficiency in the future? While discussing financial market efficiency in lecture 3 at class, I knew there are advantages and disadvantages in three market forms, and I was wonder if there was another way to get more efficient in the market. if there were, could we track to reach it in the right way? Efficient Market Hypothesis (EMH) has three forms: Weak form, Semi-strong form, and strong form. Weak forms like using historical data or information to predicate stocks. It is an inaccuracy way to forecast share price because we all know the share price changed in a random fashion and there is no systematic link between movement and subsequent ones. At the opposite way is strong market form, it shows some people can access information before other investors so that they can gain abnormal gains. It is unfair for the public ...