> As a mathematician, I think the whole notion of efficient markets is very > non-transparent, bordering on meaningless or do I mean contextless? > The first question that would need to be answered to prove me wrong is to > explain what time-span (transactional or relationship) governs your model. > You cannot have both, because they ultimately spin all the results of > economic modelling very differently > chris macrae
A purely efficient market would always be efficient, therefore for all time intervals. I don't understand the meaning of "You cannot have both". Nobody claims that markets are purely efficient. The claim is that for widely traded items, markets tend to be rather efficient because investors will obtain and analyze the relevant public knowledge. Knowledge and its application have a cost, and therefore markets will tend to be efficient to the degree that it is worthwhile for some agents to obtain the knowledge. The rest can ride on the activities of the arbitragers. Due to market efficiency, it is difficult for the typical investor and even the typical financial professional to consistently do better than the market average. Some, however, are indeed atypical, and some are just lucky. Fred Foldvary ===== [EMAIL PROTECTED]
