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Efficient Market Hypothesis
The efficient-market hypothesis (EMH) is a hypothesis in financial economics that states that asset prices reflect all available information. A direct implication is that it is impossible to "beat the market" consistently on a risk-adjusted basis since market prices should only react to new information. Because the EMH is formulated in terms of risk adjustment, it only makes testable predictions when coupled with a particular model of risk. As a result, research in financial economics since at least the 1990s has focused on market anomalies, that is, deviations from specific models of risk. The idea that financial market returns are difficult to predict goes back to Bachelier, Mandelbrot, and Samuelson, but is closely associated with Eugene Fama, in part due to his influential 1970 review of the theoretical and empirical research. The EMH provides the basic logic for modern risk-based theories of asset prices, and frameworks such as consumption-based asset pricing and int ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ball Brown Martineau V2
A ball is a round object (usually spherical, but sometimes ovoid) with several uses. It is used in ball games, where the play of the game follows the state of the ball as it is hit, kicked or thrown by players. Balls can also be used for simpler activities, such as catch or juggling. Balls made from hard-wearing materials are used in engineering applications to provide very low friction bearings, known as ball bearings. Black-powder weapons use stone and metal balls as projectiles. Although many types of balls are today made from rubber, this form was unknown outside the Americas until after the voyages of Columbus. The Spanish were the first Europeans to see the bouncing rubber balls (although solid and not inflated) which were employed most notably in the Mesoamerican ballgame. Balls used in various sports in other parts of the world prior to Columbus were made from other materials such as animal bladders or skins, stuffed with various materials. As balls are one of the m ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Jules Regnault
Jules Augustin Frédéric Regnault (; 1 February 1834, Béthencourt – 9 December 1894, Paris) was a French stock broker's assistant who first suggested a modern theory of stock price changes i''Calcul des Chances et Philosophie de la Bourse''(1863), using a random walk model. A key conclusion appears on Page 50: "''l'écart des cours est en raison directe de la racine carrée des temps''", in English: "the deviation of prices is directly proportional to the square root of time". He is also one of the first authors who tried to create a "stock exchange science" based on statistical and probabilistic analysis. His hypotheses were used by Louis Bachelier. Biography During the first years of his life, Jules Regnault lived in the département du Nord (France) where his father worked. When his father died on 16 January 1846 in Paris, his family moved to Brussels, where Odilon, Jules’ brother, became a writer and a student at the Université libre de Bruxelles in advanced mat ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Overconfidence
The overconfidence effect is a well-established bias in which a person's subjective ''confidence'' in their judgments is reliably greater than the objective ''accuracy'' of those judgments, especially when confidence is relatively high. Overconfidence is one example of a miscalibration of subjective probabilities. Throughout the research literature, overconfidence has been defined in three distinct ways: (1) ''overestimation'' of one's actual performance; (2) ''overplacement'' of one's performance relative to others; and (3) ''overprecision'' in expressing unwarranted certainty in the accuracy of one's beliefs. The most common way in which overconfidence has been studied is by asking people how confident they are of specific beliefs they hold or answers they provide. The data show that confidence systematically exceeds accuracy, implying people are more sure that they are correct than they deserve to be. If human confidence had perfect calibration, judgments with 100% confidence w ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cognitive Bias
A cognitive bias is a systematic pattern of deviation from norm (philosophy), norm or rationality in judgment. Individuals create their own "subjective reality" from their perception of the input. An individual's construction of reality, not the Objectivity (philosophy), objective input, may dictate their behavior in the world. Thus, cognitive biases may sometimes lead to perceptual distortion, inaccurate judgment, illogical interpretation, and irrationality. While cognitive biases may initially appear to be negative, some are adaptive. They may lead to more effective actions in a given context. Furthermore, allowing cognitive biases enables faster decisions which can be desirable when timeliness is more valuable than accuracy, as illustrated in Heuristic (psychology), heuristics. Other cognitive biases are a "by-product" of human processing limitations, resulting from a lack of appropriate mental mechanisms (bounded rationality), the impact of an individual's constitution and bi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Behavioral Finance
Behavioral economics is the study of the psychological (e.g. cognitive, behavioral, affective, social) factors involved in the decisions of individuals or institutions, and how these decisions deviate from those implied by traditional economic theory. Behavioral economics is primarily concerned with the bounds of rationality of economic agents. Behavioral models typically integrate insights from psychology, neuroscience and microeconomic theory. Behavioral economics began as a distinct field of study in the 1970s and 1980s, but can be traced back to 18th-century economists, such as Adam Smith, who deliberated how the economic behavior of individuals could be influenced by their desires. The status of behavioral economics as a subfield of economics is a fairly recent development; the breakthroughs that laid the foundation for it were published through the last three decades of the 20th century. Behavioral economics is still growing as a field, being used increasingly in res ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
George Soros
George Soros (born György Schwartz; August 12, 1930) is an American investor and philanthropist. , he has a net worth of US$7.2 billion, Note that this site is updated daily. having donated more than $32 billion to the Open Society Foundations, of which $15 billion has already been distributed, representing 64% of his original fortune. In 2020, ''Forbes'' called Soros the "most generous giver" in terms of percentage of net worth. Born in Budapest to a non-observant Jewish family, Soros survived the Nazi occupation of Hungary and moved to the United Kingdom in 1947. He studied at the London School of Economics and was awarded a BSc in philosophy in 1951, and then a Master of Science degree, also in philosophy, in 1954. Soros started his career working in British and American merchant banks, before setting up his first hedge fund, Double Eagle, in 1969. Profits from this fund provided the seed money for Soros Fund Management, his second hedge fund, in 1970. Double Eagle w ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Warren Buffett
Warren Edward Buffett ( ; born August 30, 1930) is an American investor and philanthropist who currently serves as the chairman and CEO of the conglomerate holding company Berkshire Hathaway. As a result of his investment success, Buffett is one of the best-known investors in the world. According to ''Forbes'', as of May 2025, Buffett's estimated net worth stood at US$160.2 billion, making him the fifth-richest individual in the world. Buffett was born in Omaha, Nebraska. The son of U.S. congressman and businessman Howard Buffett, he developed an interest in business and investing during his youth. He entered the Wharton School of the University of Pennsylvania in 1947 before graduating from the University of Nebraska at 20. He went on to graduate from Columbia Business School, where he molded his investment philosophy around the concept of value investing pioneered by Benjamin Graham. He attended New York Institute of Finance to focus on his economics background and soon ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Market Efficiency
There are several concepts of efficiency for a financial market. The most widely discussed is informational or price efficiency, which is a measure of how quickly and completely the price of a single asset reflects available information about the asset's value. Other concepts include functional/operational efficiency, which is inversely related to the costs that investors bear for making transactions, and allocative efficiency, which is a measure of how far a market channels funds from ultimate lenders to ultimate borrowers in such a way that the funds are used in the most productive manner. Market efficiency types Three common types of market efficiency are allocative, operational and informational. However, other kinds of market efficiency are also recognised. James Tobin identified four efficiency types that could be present in a financial market: 1. Information arbitrage efficiency Asset prices fully reflect all of the privately available information (the least demanding ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
The Use Of Knowledge In Society
"The Use of Knowledge in Society" is a scholarly article written by Austrian-British academic economist Friedrich Hayek, first published in the September 1945 issue of ''The American Economic Review''. Written (along with ''The Meaning of Competition'') as a rebuttal to fellow economist Oskar R. Lange and his endorsement of a planned economy, it was included among the twelve essays in Hayek's 1948 compendium '' Individualism and Economic Order''. The article is considered one of the most important in the field of modern economics. Argument Hayek's article argues against the establishment of a Central Pricing Board (advocated by Lange) by highlighting the dynamic and organic nature of market price-fluctuations, and the benefits of this phenomenon. He asserts that a centrally planned economy could never match the efficiency of the open market because what is known by a single agent is only a small fraction of the sum total of knowledge held by all members of society. A decentra ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Friedrich Hayek
Friedrich August von Hayek (8 May 1899 – 23 March 1992) was an Austrian-born British academic and philosopher. He is known for his contributions to political economy, political philosophy and intellectual history. Hayek shared the 1974 Nobel Memorial Prize in Economic Sciences with Gunnar Myrdal for work on money and economic fluctuations, and the interdependence of economic, social and institutional phenomena. His account of how prices communicate information is widely regarded as an important contribution to economics that led to him receiving the prize. He was a major contributor to the Austrian school of economics. During his teenage years, Hayek fought in World War I. He later said this experience, coupled with his desire to help avoid the mistakes that led to the war, drew him into economics. He earned doctoral degrees in law in 1921 and political studies in 1923 from the University of Vienna. He subsequently lived and worked in Austria, Great Britain, the United Sta ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Andrey Kolmogorov
Andrey Nikolaevich Kolmogorov ( rus, Андре́й Никола́евич Колмого́ров, p=ɐnˈdrʲej nʲɪkɐˈlajɪvʲɪtɕ kəlmɐˈɡorəf, a=Ru-Andrey Nikolaevich Kolmogorov.ogg, 25 April 1903 – 20 October 1987) was a Soviet mathematician who played a central role in the creation of modern probability theory. He also contributed to the mathematics of topology, intuitionistic logic, turbulence, classical mechanics, algorithmic information theory and Analysis of algorithms, computational complexity. Biography Early life Andrey Kolmogorov was born in Tambov, about 500 kilometers southeast of Moscow, in 1903. His unmarried mother, Maria Yakovlevna Kolmogorova, died giving birth to him. Andrey was raised by two of his aunts in Tunoshna (near Yaroslavl) at the estate of his grandfather, a well-to-do Russian nobility, nobleman. Little is known about Andrey's father. He was supposedly named Nikolai Matveyevich Katayev and had been an Agronomy, agronomist. Katayev ha ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
