ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Efficient Market Hypothesis: The Model That Failed

The assumption of the efficient market hypothesis is that the price of a financial asset reflects all available information that is relevant to its value. The players are rational and all information is available in the public domain. But the recent global financial crisis has brought out the failure of the EMH and there is valid theoretical criticism of the hypothesis. How did the EMH flourish and self-destruct?

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