INVESTMENTS|BODIE,KANE,MARCUSCopyright 2011 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw-Hill/IrwinCHAPTER 11The Efficient Market HypothesisINVESTMENTS|BODIE,KANE,MARCUSMaurice Kendall(1953)found no predictable pattern in stock prices.Prices are as likely to go up as to go down on any particular day.How do we explain random stock price changes?Efficient Market Hypothesis(EMH)11-2INVESTMENTS|BODIE,KANE,MARCUSEfficient Market Hypothesis(EMH)EMH says stock prices already reflect all
