Questions tagged [market-efficiency]

An efficient market is one where the market price is an unbiased estimate of the true value of the investment.

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28 votes
10 answers

Why are there no papers about stock prediction with machine learning in leading financial journals?

I'm writing my master's thesis about stock price prediction using machine learning methods. During my literature review, I noticed that a lot of research produced on this topic is of poor quality, ...
Psychotechnopath's user avatar
17 votes
2 answers

Does the rise in passive investing make the markets less efficient?

The general idea of efficiency in financial markets is that information is being processed almost instantaneously because active investors arbitrage away any arising price discrepancies. On the other ...
vonjd's user avatar
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11 votes
1 answer

What are the main market efficiency measures in the stock market?

I'm going to test for the effect of the change in market efficiency on the stock market portfolio, and, I want to know what are the main measures known in the academic literature in order to compare ...
Quantopik's user avatar
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3 votes
3 answers

Why exposure to the profitability factor increases investment premium?

I'm a DIY investor that attempts to put together his market portfolio, tilted to increase factor exposure. Currently, I'm trying to do it based on the French-Fama 5-factor model. This model contains ...
Nikolay Rys's user avatar