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Economics

Efficient Market Hypothesis and Anomalies

Quick fact

The Nobel Prize-winning economist Eugene Fama, who formalized EMH in 1970, once said that the phrase 'efficient market' is a hypothesis, not a fact. Yet, even he acknowledges that markets are not perfectly efficient.

Why this is interesting

You've probably heard that 'the market knows best'—but what if it's not always right? Discover how the Efficient Market Hypothesis claims prices are always perfect, and why real-world anomalies might prove otherwise.