Re:Markets are efficient if and only if P=NP (2010)
by mellavora on Wednesday October 21, 2020 @09:04AM
(#24847426)
As a fan of the EMH..
It is a model. All models are wrong. Some are useful.
The EMH is very useful. For example, a good understanding of its failure modes can lead to opportunities for profit. You list a few potential failure modes.
or an understanding that "efficiency" depends on diffusion of information, thus when information has uneven diffusion times-- an efficient market still allows for information-diffusion arbitrage.
It is a model. All models are wrong. Some are useful.
The EMH is very useful. For example, a good understanding of its failure modes can lead to opportunities for profit. You list a few potential failure modes.
or an understanding that "efficiency" depends on diffusion of information, thus when information has uneven diffusion times-- an efficient market still allows for information-diffusion arbitrage.