Accepted Quote by Michael Jensen
“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.”
About This Quote
Source Book: Theory of the Firm, Michael C. Jensen, 1976
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.
![“We have reached a situation where a theory has been accepted as fact by some, and possible contrary evidence is shunted aside. [This is] mythology rather than science.” quote by Robert Shapiro](https://sms4smile.com/quotes/img-quotes/c31/robert-shapiro-26969_accepted_we-have-reached-a-situation-where-a-theo_19120.jpg)
