Comments on Simon M. Keane “The Impact of EMH Logic in Practice”

Abstract

Growing out of the random-walk hypothesis the EMH conceptionally was initiated by Fama and rapidly became a well recognized framework how information may be processed in highly competitive security markets.During the seventies a lot of empirical research was done and evidence clearly turned out in favour of the EMH As a consequence the EMH became widely accepted, at least by academicians. The acceptance by practitioners, e.g.investment advisors and corporate financial managers was relatively poor Although deficiences in testing methods and statistical tools as well as recent evidence on a variety of ‘anomalies’ could not really undermine the belief in the ‘efficient market perspective’ this scenario probably will not alter the existing attitude of practitioners.