Examining the Efficient Market Hypothesis, Overcoming its Effects

Abstract: A 12 page paper examining the efficient market hypothesis and market anomalies in order to determine how investors can maximize their returns. Warren Buffett believes that markets are not efficient at all, that it is possible to find and exploit undervalued stocks and so maximize investment return on those stocks. The efficient market hypothesis (EMH), however, holds that stock prices occupy the levels they do because all possible information is known about them and that information has brought them to the price level where they are. There are proponents of the efficient market hypothesis; there are those who, like Warren Buffett, roundly reject it. Bibliography lists 28 sources.

Filename: KSeconEffMktHyp.rtf

Pages: 12

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Catagory: Money & Banking / Corporate Finance

Subcatagory: Accounting & Personal Finance

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