History of the Efficient Market Hypothesis
Author(s)
Thian Cheng Lim , Xiu Yun Lim , Riuyang Zhai ,
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Abstract
This paper reviews and summarizes the work of Sewell (2011). The purpose is to investigate the evolution and development of the Efficient Market Hypothesis from its inception as theory of probability to Fama (1965) proposition and revision (Fama, 1970; 1991). It discusses the random walk theory and reports the various research papers that have been written on the subject. This paper also clarifies the debate on the validity of EMH and explains the importance of EMH to finance theory.
Keywords
EMH, history, EMH – Efficient market hypothesis
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