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- In the 1960s, Eugene Fama demonstrated that stock price movements are impossible to predict in the short-term and that new information affects prices almost immediately, which means that the market is efficient. The impact of Fama's results has extended beyond the field of research.
www.nobelprize.org/prizes/economic-sciences/2013/fama/facts/
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The greatness of Fama’s contribution lies in the fact that efficient-markets became the organizing principle for decades of empirical work in financial economics. This empirical work taught us much about the world, and in turn affected the world deeply.
Aug 30, 2024 · Snagging a lunch date with the financial economist Eugene Fama proved almost as hard as beating the stock market. My first attempt in 2021 foundered because of long-lasting Covid-19...
Apr 1, 2020 · The efficient market hypothesis (EMH) that developed from Fama’s work (Fama 1970) for the first time challenged that presumption. Fama’s results reported in 1965 were entirely empirical in nature, but the coincident work by Samuelson (1965) provided a strong theoretical basis for this hypothesis.
- Stephen J. Brown
- 2020
In the 1960s, Eugene Fama demonstrated that stock price movements are impossible to predict in the short-term and that new information affects prices almost immediately, which means that the market is efficient. The impact of Fama's results has extended beyond the field of research.
Sep 16, 2021 · Just one example: The index fund is rooted in his efficient market hypothesis. In an interview with ThinkAdvisor, Fama concisely explains EMH, argues why active management won’t bring the kinds...
- Jane Wollman Rusoff
In 1965 he published an analysis of the behavior of stock market prices that showed that they exhibited so-called fat tail distribution properties, implying extreme movements were more common than predicted on the assumption of normality.
In the initial empirical work on market e’ciency, the tests centered on predict-ing returns using past returns. Fama, Fisher, Jensen, and Roll (FFJR 1969) ex-tend the tests to the adjustment of stock prices to announcements of corporate events. In FFJR the event is stock splits, but the long-term impact of the paper
