Why Does the Theory of Efficient Markets Imply That Stock

question 70

Essay

Why does the theory of efficient markets imply that stock price movements are unpredictable?

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Definitions:

Abnormal Behaviors

Actions or behaviors that deviate significantly from what is considered normal or typical, often indicative of psychological disorders or mental distress.

Shaman

A person regarded as having access to, and influence in, the world of benevolent and malevolent spirits, typically among certain tribal societies.

Melancholia

A severe form of depression characterized by persistent feelings of deep sadness, despair, and lack of interest in activities, often accompanied by physical symptoms.

Ancient Greeks

A civilization belonging to a period from the 8th/6th centuries BC to 146 BC, known for its rich contributions to art, philosophy, politics, and science.