The Efficient Market Hypothesis (EMH) asserts that stock market efficiency ensures that prices on traded assets – stocks, bonds and property – are a true reflection, at any given time, of all available and relevant information. This is to a great degree based on the argument that in an active market, which includes numerous intelligent and well-informed investors, stocks cannot fail to be a reflection of all available information and therefore will be appropriately priced. This being the case, according to EMH, it is impossible to use market timing or expert stock selection...
