Explain the argued of Eugene Fama regarding excess return
Explain the argued of Eugene Fama regarding excess return.
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Fama argued that since there are many more active, intelligent and well-informed market participants’ securities will be priced to reflect all available information. Therefore was born the idea of the efficient market, one where this is impossible to beat that market.
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Explain drawbacks of Brownian motion.
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Illustrates example of Brownian motion?
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What is excess return?
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