The efficient market hypothesis is based on the notion that prices for securities or assets in a market are always reflective of all information available to investors. The efficient market ...

Market segmentation theory shows bond interest rates are set independently per maturity segment. The yield curve plots differences in yields across various bond maturities to assess economic ...

Capitalism and a free market are two complementary economic theories, but in practice, many nations borrow elements of each system.

Modern portfolio theory is a prescriptive theoretical model that shows what asset class mix would produce the greatest expected return for a given risk level. Behavioral finance instead focuses on ...

Merton, Robert C. "On Market Timing and Investment Performance Part I: An Equilibrium Theory of Value for Market Forecasts." Journal of Business 54, no. 3 (July 1981): 363–406.

For decades, a popular theory has held that US stocks tend to rise more in January than in other months. The existence of ...

The famed efficient market hypothesis, or EMH, is widely accepted by academics and modern investors. The hypothesis states that stock prices reflect all available information at any given time ...

Chevalier, Judith A., and David S. Scharfstein. "Capital Market Imperfections and Countercyclical Markups: Theory and Evidence." American Economic Review 86, no. 4 ...

Moreover, economists, scholars, and investors have all put forth these theories over time to explain how the stock market functions and how it impacts the overall economy. The Dow Theory is one ...

The Gamestop stock explosion has mostly been told as a story of small versus big investors. But, my take is that it was also a big win for behavioral finance by disproving the efficient market ...

For more than a century, UChicago scholars’ groundbreaking theories have redefined the field of economics—from Milton Friedman’s ideas on monetary policy and Gary Becker’s theory of human capital to ...