What Is the 'Efficient Market Hypothesis' and What Are Its Three Forms? ⎊ Path

What Is the ‘Efficient Market Hypothesis’ and What Are Its Three Forms?

The Efficient Market Hypothesis (EMH) is a theory that states asset prices fully reflect all available information. The weak form asserts that all past market prices and data are fully reflected in securities prices.

The semi-strong form claims that all publicly available information is reflected in prices, making fundamental analysis useless. The strong form, the most extreme version, states that all information, both public and private (insider), is reflected in stock prices, meaning no one can consistently achieve excess returns.

Differentiate between a ‘Strong Basis’ and a ‘Weak Basis’

Does the Existence of ‘Pump-and-Dump’ Schemes Contradict the Weak Form of EMH?

How Does the Lack of Centralized Regulation Affect the EMH in the Crypto Space?

If the Semi-Strong Form of Market Efficiency Holds True, What Is the Primary Way for an Investor to Achieve Higher Returns?

What Is the Difference between a Weak Basis and a Strong Basis?

What Are ‘Weak Blocks’ and How Were They Proposed to Address Propagation Delay?

What Is ‘Information Asymmetry’ and How Does It Relate to Market Efficiency in Crypto?

Does the Existence of Predictable Price Patterns Contradict the Weak Form of EMH?

Arbitrage ⎊ The Efficient Market Hypothesis (EMH) within cryptocurrency and derivatives markets posits that asset prices fully reflect all available information, rendering consistent abnormal returns unattainable; however, the nascent nature of these markets introduces deviations from this ideal, creating transient arbitrage opportunities exploitable through high-frequency trading strategies and sophisticated quantitative models.