‘An “efficient” market is defined as a market where there are large numbers of rational, profit-maximizers actively competing with each trying to predict future market values of individual securities, and where important current information is almost freely available to all participants.’
‘There is an old joke, widely told among economists, about an economist strolling down the street with a companion when they come upon a $100 bill lying on the ground. As the companion reaches down to pick it up, the economist says “Don’t bother – if it were a real $100 bill, someone would have already picked it up”.’
Andrew Lo and Craig MacKinlay2
Step back in time to the era of progressive ...