What do you think Keynes would think of the efficient markets hypothesis? Explain
Answer:-
KEYNES THEORY ON EFFICIENT MARKET HYPOTHESIS'
It says that Market are correctly valued and assets prices reflects all available information about them. If new information about a company is available the price will quickly reflect this and there is no scope of arbitrage.
Means alpha generation is impossible ( markets are neutral)
Speculators have very less or no scope of harming small investors or create a bubble.
However, this theory is criticised by many economist and research scholars
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