MGMP 543, FINANCE
Topic 14 – Efficient Market Hypothesis II
Professor Kunal Sachdeva
1
,Objectives
• Motivation: what is market efficiency? Why do we care?
• Let’s test the “Wisdom of Crowds!”
• Efficient Market Hypothesis
• Distinguish versions of market efficiency
• Weak Form
• Semi-Strong Form
• Strong Form
• Implication for Investing
• Alternatives to the CAPM
• APT
• Fama-French 3 Factor Model
2
, 3
Topic 14 – Efficient Market Hypothesis II
Professor Kunal Sachdeva
1
,Objectives
• Motivation: what is market efficiency? Why do we care?
• Let’s test the “Wisdom of Crowds!”
• Efficient Market Hypothesis
• Distinguish versions of market efficiency
• Weak Form
• Semi-Strong Form
• Strong Form
• Implication for Investing
• Alternatives to the CAPM
• APT
• Fama-French 3 Factor Model
2
, 3