Efficient Market Hypothesis
- Social Sciences -
Finance & Accounting Dictionary
Definition
A finance and accounting concept defining a method, measure, or process used to record activity and support financial decisions. It specifies how value, risk, or performance is measured or controlled through standardized rules and routines. It does not ensure correctness without reliable inputs, appropriate assumptions, and effective review and controls.
Efficient Market Hypothesis
Social Sciences Dictionary
Definition
The proposition that publicly available information is incorporated into financial asset prices so that, after adjusting for risk and transaction costs, no trading strategy based solely on that information can reliably produce persistent abnormal (risk‑adjusted) returns.