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There is no other proposition in economics that has more…

“There is no other proposition in economics that has more solid empirical evidence supporting it than the Efficient Market Hypothesis... In the literature of finance, accounting, and the economics of uncertainty, the EMH is accepted as a fact of life.” quote by Michael Jensen
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“There is no other proposition in economics that has more solid empirical evidence supporting it than the Efficient Market Hypothesis... In the literature of finance, accounting, and the economics of uncertainty, the EMH is accepted as a fact of life.”

Michael Jensen

About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

The Efficient Market Hypothesis is widely regarded as a well‑supported principle that markets reflect all available information.

In simple terms: Markets quickly incorporate information into prices.

Key Takeaway

Accept market prices as reliable signals.

Themes

economics finance information efficiency

Mood

analytical skeptical

Type

theoretical empirical

When to use this quote

  • investment decisions
  • portfolio management
  • policy analysis
  • academic research

Key Concepts

rational expectations price discovery market behavior

Questions to Reflect On

  • How do market anomalies affect the EMH?
  • What role do investor psychology play in market pricing?
A Different Perspective

Critics argue that anomalies and behavioral biases can cause deviations from perfect efficiency.

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