EconPapers    
Economics at your fingertips  
 

A Critical Survey on Efficient Market Hypothesis (EMH), Adaptive Market Hypothesis (AMH) and Fractal Markets Hypothesis (FMH) Considering Their Implication on Stock Markets Behavior

Cristi Spulbar (), Ramona Birau () and Lucian Florin Spulbar ()
Additional contact information
Cristi Spulbar: University of Craiova
Ramona Birau: University of Craiova
Lucian Florin Spulbar: University of Craiova

Ovidius University Annals, Economic Sciences Series, 2021, vol. XXI, issue 2, 1161-1165

Abstract: The fundamental objective of our research study is to provide a critical analysis on Efficient Market Hypothesis (EMH), Adaptive Market Hypothesis (AMH) and Fractal Markets Hypothesis (FMH) considering their impact on stock markets behavior. Efficient Market Hypothesis is one of the pillars of modern finance and it is built on the paradigm that any publicly information can be considered as available for all financial investors, stock market participants or other actors in financial markets, and consequently asset prices always integrate and reflect all relevant information. Adaptive Market Hypothesis is based is a more recent theory whose theoretical architecture includes evolutionary principles. On the other hand, the Fractal Market Hypothesis is focused on the concept of the stock market liquidity, considering the fact that Efficient Market Hypothesis completely ignores this major aspect. Moreover, a liquid stock market represents a stable market which has significant implications at the investment level. Past financial evidence has shown that short-term price changes exhibit the obvious tendency to be more volatile compared to longterm price trends.

Keywords: Efficient Market Hypothesis (EMH); Adaptive Market Hypothesis (AMH); Fractal Markets Hypothesis (FMH); stock market; Random Walk Hypothesis (RWH); chaos theory (search for similar items in EconPapers)
JEL-codes: D53 E44 G1 G4 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://stec.univ-ovidius.ro/html/anale/RO/2021-2/Section%205/31.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xxi:y:2021:i:2:p:1161-1165

Access Statistics for this article

Ovidius University Annals, Economic Sciences Series is currently edited by Spatariu Cerasela

More articles in Ovidius University Annals, Economic Sciences Series from Ovidius University of Constantza, Faculty of Economic Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Gheorghiu Gabriela ().

 
Page updated 2022-05-14
Handle: RePEc:ovi:oviste:v:xxi:y:2021:i:2:p:1161-1165