The Efficient Market Theory and Evidence

The Efficient Market Theory and Evidence reviews the extensive theoretical and empirical literature on the efficient market hypothesis. Beginning with a brief discussion of current efficient market theory, this book presents the theoretical foundation and discusses the recent empirical evidence on efficiency as it pertains to a range of different markets - not simply the large, liquid public securities markets but also the private capital markets. The Efficient Market Theory and Evidence suggests that while tests of the theory on prices have produced violations suggestive of the potential for active management to add value to a multi-asset portfolio, finding consistent out-performing active managers is difficult.