Efficient Markets vs. Excess Volatility - Financial Markets

Explore key theories in finance related to stock price analysis and prediction in this lecture from Yale University's Financial Markets course. Delve into the efficient markets hypothesis, which posits that stock prices reflect all available information, and the random walk theory, which suggests that price changes stem from unanticipated new information. Examine statistical tools used to test these hypotheses and predict future stock prices. Discover how efficient markets theory is a partial truth, as beating the market is difficult but not impossible. Learn about varying degrees of market efficiency, the case of First Federal Financial, and challenges in forecasting the market. Gain insights into information access, auto-regressive models, and the complexities of financial markets in this comprehensive exploration of stock price dynamics.

- Chapter 1. Last Thoughts on Insurance and Catastrophe Bonds
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- Chapter 2. Information Access and the Efficient Markets Hypothesis
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- Chapter 3. Varying Degrees of Efficient Markets and No Dividends: The Case of First Federal Financial
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- Chapter 4. The Random Walk Theory
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- Chapter 5. The First Order Auto-regressive Model
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- Chapter 6. Challenges in Forecasting the Market
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