Efficient Markets Hypothesis and Its Limitations - Financial Markets Lecture 7

Explore the intricacies of financial markets in this comprehensive lecture from Yale University's 2011 Financial Markets course. Delve into the Efficient Markets Hypothesis and its implications for investment strategies. Examine the Sharpe ratio as a performance measure and its potential manipulations. Investigate the theory that markets efficiently incorporate all public information, making it impossible to beat the market. Compare technical analysis, Random Walk theory, and First-Order Autoregressive Process in stock price modeling. Critically analyze the validity of the Efficient Markets Hypothesis through real-world examples and the success of investment managers like David Swensen. Gain valuable insights into stock market behavior and the challenges of measuring standard deviation for illiquid asset classes.

- Chapter 1. Swensen's Lecture in Retrospect and Manipulations of the Sharpe Ratio.
- Chapter 2. History of the Efficient Markets Hypothesis.
- Chapter 3. Testing the Efficient Markets Hypothesis .
- Chapter 4. Technical Analysis and the Head and Shoulders Pattern .
- Chapter 5. Random Walk vs. First-Order Autoregressive Process as Stock Price Model.