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Market Efficiency | Vibepedia

Market Efficiency | Vibepedia

Market efficiency is a concept in finance that suggests financial markets reflect all available information, making it impossible to consistently achieve return

Overview

Market efficiency is a concept in finance that suggests financial markets reflect all available information, making it impossible to consistently achieve returns in excess of the market's average. This idea has been debated by economists and investors, including Eugene Fama, Warren Buffett, and Peter Lynch. The efficient market hypothesis (EMH) has been a cornerstone of modern finance, influencing investment strategies and portfolio management.