Quotes on Efficient Market Hypothesis

Let us see some of the quotes on “Efficient Market Hypothesis”

1. “There is no other proposition in economics which has more solid empirical evidence supporting it than the Efficient Markets Hypothesis.” – Jensen M.C, 1978


2. “To invest successfully, you need not understand beta, efficient markets, modern portfolio theory, option pricing or emerging markets. You may, in fact, be better off knowing nothing of these. That, of course, is not the prevailing view at most business schools, whose finance curriculum tends to be dominated by such subjects. In our view, though, investment students need only two well-taught courses – How to Value a Business, and How to Think About Market Prices.” – Warren Buffett
   


3. “Although efficient markets people still go around saying there is a “mountain” of evidence supporting their hypothesis, the truth of the matter is that it’s a very old mountain that’s now eroding rapidly into the sea.” – Robert Haugen
   


4. “The sad truth is that it is precisely those who disagree most with the hypothesis of efficient market pricing of stocks, those who pooh-pooh beta analysis and all that, who are least able to understand the analysis needed to test that hypothesis.” – Paul Samuelson
   

By Dr. Srikanth Parthasarathy
Associate Professor, Rajalakshmi School of Business, Chennai
Email: srikanth@rsb.edu.in