Effective Market Assumption When setting a financial price, the market is generally considered to be skilled and intellectual. In the stock market, shares are based on given information and should be priced at an exact level. In the past, this should have been guaranteed by investors getting enough information. But as new information comes up, the price will change. If investors ignore price-sensitive data, free market will be inefficient assuming this.
Now, I know that you said that the market is random chaos. An efficient market hypothesis is that all market information is fully distributed and priced as assets, with the final market exceeding all members. This is totally nonsense. This is the only person who believes that this is a scholar, who has never paid. Information is absolutely ubiquitous. It is asymmetrical. And even if everyone gets the same information, we do not know how to handle it. Most people simply can not handle this information correctly and can not make the right decision. They can not separate signals from noise
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Efficient Market Hypothesis and Evaluation of Random Walk An efficient market hypothesis is a widely accepted monetary theory accepted by most academic financial economists. It is widely believed that the securities market is very effective in reflecting information on individual stocks and the entire stock market. In a generally accepted opinion, news spreads quickly when information is displayed and is included in the security price without delay. Thus, when the term "effective market" was introduced in the economics literature in the 1960's, it was defined as the market "fully reflected" and "quickly adapted to new available information" market prices . Fama, 1970, p. 383. In this hypothetical context, "effective" experience means that the market can quickly summarize new information on economic, industrial, or corporate value and include it exactly in the price of the securities.
An efficient market hypothesis is an investment hypothesis that assumes that financial markets can effectively provide market revenue information for all forms of investment. More specifically, in an efficient market hypothesis, investors are affected by existing market conditions from the perspective of financial stability or currency markets. It is noteworthy that the domestic inflation level and economic situation determine the financial information efficiency of the market from the viewpoint of monetary gain and return on capital. In this respect, investors need to evaluate investment companies based on current situation and information gained from financial markets. This is considered to provide accurate information on financial information (Higgins 12 - 43)