Efficient Markets and Behavioral Finance
Objective
- Describe how risk and return relate to market efficiency
Reading
- Chapter 11: Market Efficiency
- Chapter 12: Market Efficiency
- Chapter 13: Behavioral Finance
Efficient Markets
Robert Shiller @ Yale in 2011
Qualitative Efficiency
- Weak-Form Efficiency
- Semi-Strong Form Efficiency
- Strong Form Efficiency
Quantitative Efficiency
- Random Walk
- Martingale
Behavioral Finance
Robert Shiller @ Yale in 2011
Behavioral Biases
Technical Analysis
Technical Indicators
- Market Breadth
- Short Interest
- Moving Averages
- Volatility Skew